European stocks extended an all-time high, posting their biggest weekly gain since January.
The STOXX Europe 600 Index advanced 0.9 percent to 412.93 at the close of trading in London. It climbed 3.8 percent in a holiday-shortened week. Rallies in Nokia Oyj and Shire PLC led technology and healthcare stocks higher on Friday.
The benchmark gauge surpassed a record reached in 2000 on Thursday, as data showed German industrial production beat forecasts, fueling optimism the Eurozone economy is improving. That took its annual rally to 21 percent, as the euro weakened with the European Central Bank starting a quantitative easing (QE) program. Similar measures by the US Federal Reserve helped US stocks more than triple from a 2009 low, including a 30 percent rally in 2013.
“This year will be Europe’s answer to what US equities gave us in 2013,” Saxo Bank A/S head of equity strategy Peter Garnry said by telephone from Hellerup, Denmark. “Companies are facing extremely cheap financing rates, the lowest euro in a decade, low oil prices, QE and an improving economy. If all these positive factors can’t get Europe back on track, then nothing will.”
Fourteen of the 17 western-European markets open on Friday advanced. Benchmark gauges in Norway and Germany posted the biggest gains, rising more than 1.7 percent. Portugal’s PSI 20 Index dropped 0.3 percent for the worst performance. Greek markets were closed for a holiday.
Technology and healthcare stocks climbed the most in the STOXX 600. Nokia jumped 5.6 percent after people familiar with the matter said it is exploring the sale of its maps business. Shire rallied 4.8 percent after US regulators granted a priority review for its experimental eye drug Lifitegrast.
Carrefour SA climbed 2 percent after France’s largest retailer forecast annual profit growth of as much as 6.7 percent and reported first quarter sales that beat the median analyst estimate. Bollore SA added 1.9 percent after it spent 800 million euros (US$846.9 million) to increase its stake in Vivendi SA to 14.52 percent.
UK homebuilders advanced after Jefferies Group LLC said the housing market ahead of a May 7 general election is stronger than expected. Barratt Developments PLC and Taylor Wimpey PLC gained more than 3 percent as the brokerage upgraded the shares. The FTSE 100 Index climbed 1.1 percent, extending a record.
Cie de Saint-Gobain SA lost 2.4 percent after a report said its CEO sees no construction recovery in France this year.
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