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European stocks advanced for a second day, erasing an earlier drop, as companies from Heineken NV to PSA Peugeot Citroen reported better-than-estimated results and euro-area industrial output rose more than forecast.
The Stoxx Europe 600 Index rose 0.4 percent to 288.27 at the close of trading, after dropping as much as 0.3 percent.
National benchmark indexes rose in 16 of the 18 western European markets.
FTSE 100 6,359.11 +20.73 +0.33% CAC 40 3,698.53 +11.95 +0.32% DAX 7,711.89 +51.70 +0.67%
Euro-area industrial production increased more than economists forecast in December. Factory production in the 17- nation currency bloc rose 0.7 percent from November, when it declined a revised 0.7 percent, the European Union’s statistics office in Luxembourg said today. Economists had forecast a gain of 0.2 percent.
Heineken added 5.7 percent to 54.93 euros, its highest price since at least October 1989. Earnings before interest and taxes, excluding some items, rose to 2.9 billion euros ($3.9 billion) from 2.7 billion euros a year earlier, the maker of Amstel lager and Strongbow cider said. That beat the median estimate for profit of 2.85 billion euros.
Peugeot, Europe’s second-biggest carmaker, advanced 7.3 percent to 6.40 euros, its biggest gain since Jan. 4. The company posted a loss before interest, taxes and one-time items of 576 million euros for 2012, down from a profit of 1.09 billion euros a year earlier. The loss was narrower than the 647 million-euro average analyst estimate.
Kabel Deutschland surged 8.8 percent to 69.17 euros, the highest price since its March 2010 initial public offering, as a person familiar with the matter said Vodafone is considering a takeover bid.
Societe Generale declined 1.17 euros to 31.50 euros. France’s second-largest bank posted a fourth-quarter loss after writing down its stake in derivatives broker Newedge Group and setting aside 300 million euros for legal expenses. The net loss was 476 million euros, compared with a 100 million-euro profit a year earlier, the Paris-based lender said. That was wider than the average estimate for a loss of 203 million euros.
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