Gains in Italian lenders and Swiss food giant Nestle SA helped European stocks rebound from three weeks of losses.
The Stoxx Europe 600 Index added 0.6 percent at 8:29 a.m. in London, following its longest weekly losing streak since the U.K.’s vote to leave the European Union. The benchmark is still on track for a fourth quarterly advance, the best showing since 2014.
Intesa Sanpaolo SpA jumped 3.6 percent after agreeing to pay just 1 euro for the good assets of two failed Veneto banks, with the backing of the Italian state. The intervention, which analysts say reduces the systemic risk in the country’s financial sector, lifted shares of UniCredit SpA, Banco BPM SpA and BPER Banca SpA, up more than 2 percent.
- Nestle, Europe’s most valuable listed company, rose 3.7 percent to an all-time high. Activist investor Dan Loeb’s hedge fund has amassed a $3.5 billion stake in the Nestle, and has encouraged the company to sell its stake in L’Oreal SA, increase leverage for share buybacks and adopt a formal profitability target. L’Oreal climbed 2.9 percent.
- Volume in Italy’s FTSE MIB Index was 63 percent higher than the average of the past 30 days. The gauge rallied 1.1 percent for the best performance among Europe’s national benchmarks.
- European Central Bank President Mario Draghi and former Federal Reserve Chairman Ben Bernanke will give opening speeches at the ECB’s annual forum in Sintra, Portugal.