LONDON: European stocks climbed for a fourth day, erasing their weekly decline, as results from Vinci SA to Sandvik AB that topped estimates outweighed slower U.S. economic growth than forecast.
Vinci, Europe’s biggest builder, gained 4% and Sandvik, the world’s largest maker of metal-cutting tools, surged 12%. Nobel Biocare Holding AG, the second-biggest producer of dental implants, jumped 4.2% after its first- quarter profit rose.
The Stoxx Europe 600 Index advanced 0.7% to 258.91 at 3 p.m. in London, for a weekly increase of 0.4%. The gauge has rallied 5.9% this year as the European Central Bank boosted long-term loans to the region’s financial institutions and U.S. economic reports exceeded forecasts.
“Whilst I’m cautious on the outlook for markets, partly because of valuation, partly because of the economics, the positive news in the short-term from earnings is enough to encourage buyers,” said Gerard Lane, an equity strategist at Shore Capital Group Ltd. in Liverpool, England.
According to data compiled by Bloomberg, companies in the Stoxx 600 that have reported results since April 10 have exceeded analysts’ per-share profit estimates by 6.9% on average.
The U.S. economy expanded less than forecast in the first quarter as a smaller contribution from inventories overshadowed the biggest gain in consumer spending in more than a year. (Bloomberg/T07/aph)