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European stocks rose for a sixth week as China’s slowest expansion in three years fueled speculation policy makers will add to stimulus measures and Italy’s borrowing costs fell at an auction.
Storebrand ASA (STB), Norway’s second-largest publicly traded insurer, rallied 8.2 percent after saying it will meet capital requirements without selling shares. Temenos Group AG (TEMN) rebounded 5.9 percent. PSA Peugeot Citroen (UG) slumped to the lowest price since at least 1989 over concerns that the French government may step in after Europe’s second-largest carmaker announced plans to close a factory and cut jobs.
The Stoxx Europe 600 Index added 1.3 percent to 256.26 at the close of trading.
National benchmark indexes gained in all of the 18 western- European (SXXP) markets except Iceland.
FTSE 100 5,666.13 +57.88 +1.03% CAC 40 3,180.81 +45.63 +1.46% DAX 6,557.1 +137.75 +2.15%
Italian borrowing costs fell at an auction today, hours after Moody’s Investors Service downgraded the country’s bond rating by two levels to Baa2 from A3 and reiterated its negative outlook, citing the worsening political and economic situation.
Storebrand, Norway’s second-largest publicly traded insurer, rallied 8.2 percent to 24.01 kroner. The company said it will cut costs by at least 400 million kroner ($66 million) by 2014 and meet stricter European capital requirements without selling new shares.
Temenos Group AG gained 5.9 percent to 10.85 francs. The banking-software maker plunged the most in 3 1/2 years yesterday as it cut its revenue-growth forecast and said its chief executive officer will step down.
Deutsche Telekom AG (DTE) gained 5.7 percent to 9.18 euros after Credit Suisse Group AG raised its rating on the company’s shares to neutral from underperform.
Elisa Oyj (ELI1V), Finland’s largest wireless carrier by subscribers, jumped 5.7 percent to 16.80 euros as second-quarter sales of 389 million euros beat the average 384.2 million-euro analyst estimate.
Nokia Oyj (NOK1V) fell 2.5 percent to 1.51 euros after the mobile- phone maker struggling to recover lost market share said it will close two of its four regional distribution centers in China as part of a restructuring plan it announced last month to halt mounting losses from plunging smartphone sales. Nokia on June 14 said it would cut as many as 10,000 jobs globally and close facilities.
Deutsche Bank AG slipped 1.9 percent to 25.60 euros and Bankia SA declined 7 percent to 65.1 euro cents.
Booker Group Plc (BOK), the largest U.K. food wholesaler, slumped 2.6 percent to 88.95 pence after Shore Capital Group Ltd. cut the stock to sell from hold.
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