European Stocks Hover Near 1-Year High, Set for 2nd Weekly Gain 

European stocks held steady after closing at their highest level since January on Thursday, heading for a second week of gains.

The Stoxx Europe 600 Index rose less than 0.1 percent at 08:45 a.m. in London as gains in oil, health-care and telecommunications shares were offset by losses in banks and media. Actelion Ltd. was the best performer in the gauge, up 8.4 percent, after people with knowledge of the matter said Sanofi is in advanced talks to acquire the Swiss drugmaker in a deal that could be announced as soon as next week.

• European equities have risen this week after the Federal Reserve’s forecast for a steeper rate-hike path next year boosted lenders while the euro’s subsequent weakening against the dollar supported the region’s exporters. The Stoxx 600 Banks Index, down 0.2 percent Friday, is still up 1.2 percent for the week. The Stoxx 600 climbed 1 percent this week.
• “Europe is cheap, the corporate sector in most cases is running free cashflow while investor sentiment is bearish,” Jefferies global equity strategists including Sean Darby and Kenneth Chan wrote in a note. Investor positioning is bearish given “huge” outflows over the past year, they said.
• Banca Monte dei Paschi di Siena SpA rose 1.8 percent after receiving regulatory approval to extend a debt-for-equity swap in an effort to raise 5 billion euros ($5.2 billion) privately.
• The expiration of some futures and options on stocks and indexes Friday, known as triple witching, may add to stock volatility.

Source: Bloomberg

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