Indexes across Europe gain most in six weeks

Eurostoxx 50:2,171.35 (+88.0) Frankfurt DAX:5,622.62 (+277.06) Paris CAC:3,009.94(+150.60)

EUROPEAN STOCKS climbed the most in six weeks yesterday amid speculation policy makers will increase efforts to contain the region’s sovereign-debt crisis.

National benchmark indexes rallied in all 18 western European markets. Germany’s DAX gained 5 per cent, the most in 16 months. France’s CAC 40 rose 4.7 per cent and the UK’s FTSE 100 advanced 3.5 per cent.

BNP Paribas and Société Générale, France’s largest banks, pushed a gauge of European lenders higher, soaring 12 per cent each to €29.61 and €19.60 respectively. Credit Agricole jumped 9 per cent to €5. Austria’s Erste Group Bank surged 9.3 per cent to €20.71 while Deutsche Bank increased 10 per cent to €27.71.

Allianz and Axa, Europe’s biggest insurers, climbed 8.9 per cent to €70.78 and 9.9 per cent to €9.87 respectively. Delta Lloyd rose 10 per cent to €11.25. A gauge of insurance companies in the Stoxx 600 is heading for the biggest two-day gain since March 2009. MAN rose 6.9 per cent to €63.08, the biggest gain since August 11th.

Volkswagen’s takeover obtained anti-trust approval without the need for asset sales or other remedies, the European Commission said late yesterday. The Germany-based car maker will own 55.9 per cent of MAN’s voting rights after the deal closes. Volkswagen preferred shares gained 5.9 per cent to €107.55.

Continental, Europe’s second-biggest car-parts maker, gained 10 per cent to €46.26. Porsche preferred shares rose 7.8 per cent to €34.93.

Novartis added 1.7 per cent to 49.95 Swiss francs after the company’s Seebri drug improved lung function in patients with smoker’s cough and helped them exercise for longer, according to two studies.

Antofagasta, the copper producer controlled by Chile’s Luksic family, climbed 9.9 per cent to 1,044 pence and Kazakhmys jumped 9.1 per cent to 853.50 francs. Vedanta Resources rallied 10 per cent to 1,182 pence, the biggest gain since May 2010.

Alstom, the third-largest maker of power equipment, increased 8.5 per cent to €25.92 as a Morgan Stanley analyst said the stock was “very attractive”.

Vestas Wind Systems, the world’s biggest wind-turbine maker, gained 8.9 per cent to 93.45 kroner. – (Bloomberg)