LONDON: European stocks rose the most in a week after reports on U.S durable-goods orders and pending home sales beat estimates and speculation mounted that China will introduce additional economic stimulus.
Lloyds Banking Group Plc nd Barclays Plc followed bank shares higher. Portugal Telecom SGPS climbed 3.1% after announcing a 200 million-euro ($250 million) share buyback.
The Stoxx Europe 600 Index gained 1.4% to 245.87 at the close in London, snapping four days of losses. The gauge has climbed 5.1% from its 2012 low on June 4 as Greece formed a coalition government after its second election.
“Today’s move all boils down to the news related to the world’s two largest economies” said Keith Bowman, an equity analyst at Hargreaves Lansdown Stockbrokers in London.
Stocks climbed after a U.S report showed orders for durable goods climbed more than forecast in May, easing concern that U.S. manufacturing is faltering. Separate data showed more Americans than forecast signed contracts to buy previously owned homes last month. (Bloomberg/tw)