European stocks advanced this week on optimism that the economic recovery will continue, while central banks said they stand ready to act should growth falter.
The STOXX Europe 600 Index rose 0.4 percent this week, paring last week’s 0.7 percent slide. It has rallied 14 percent from its low this year on May 25 as investors speculated that the economy will continue to grow even as European nations slash spending to control their budget deficits.
German business confidence unexpectedly rose to the highest level in more than three years this month. The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 106.8 from 106.7 last month.
National benchmark indexes rose in all but five of the 18 western European markets. France’s CAC 40 Index and the UK’s FTSE 100 Index gained 1.6 percent. Germany’s DAX rallied 1.4 percent.