European Stocks Advance as U.S. Data Suggest Economic Recovery Is On Track

By Adam Haigh -
Dec 16, 2010 9:13 AM PT
(Bloomberg)

European stocks gained for the eighth time in nine days after better-than-forecast U.S. economic data boosted speculation that the recovery is on track.

Ericsson AB rallied 4.3 percent as Svenska Handelsbanken AB upgraded the world’s biggest maker of mobile-phone networks. Danisco A/S, the largest maker of food ingredients, climbed 4.4 percent after earnings topped estimates. BP Plc fell 1.4 percent after being sued by the Obama administration for violation of environmental laws in the Gulf of Mexico oil spill.

The Stoxx Europe 600 Index rose 0.4 percent to 277.59 at the 4:30 p.m. close in London after swinging between gains and losses at least 20 times. The gauge has rallied 9.3 percent this year as companies reported higher earnings, the U.S. Federal Reserve unveiled a $600 billion bond-purchase program to boost growth and the European Union bailed out Greece and Ireland.

“The markets are somewhat getting used to the idea of fiscal sustainability and the challenges in Europe,â€