London - European stocks held on to their biggest weekly gain in a month amid deal activity and mixed earnings reports.
British American Tobacco rose 2.7% after offering to buy the stake it doesn’t already own in Reynolds American for $47bn. SAP climbed 3.1% fter raising its profit and sales projections.
Ericsson declined 4% after posting its first loss in almost four years. Daimler lost 2.7% after lowering its revenue forecast and saying the impact of the UK’s secession vote is becoming apparent.
The Stoxx Europe 600 Index lost less than 0.1% at 10:42. The benchmark has climbed 1.3% this week, boosted by better-than-estimated earnings and signs from European Central Bank President Mario Draghi that quantitative easing won’t end abruptly. That’s put the benchmark on course for an advance of 0.7% in October, reversing an earlier slide.
Concern that central banks will tighten monetary policies too soon hindered equity gains in recent weeks. While Draghi’s comments yesterday eased some of those worries, he left questions unanswered about the how it will extend, adjust or wind down the programme.
Traders are also awaiting cues on the trajectory of US interest rates, pricing in a 68% chance the Federal Reserve will act in December.
Among other shares active on corporate news, Yara International and Valeo advanced at least 4% after their results beat projections. Intercontinental Hotels dropped 1.4% after its revenue per room rose at a slower pace than analysts estimated.
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