“European stocks advanced, snapping a two-day decline, as merger and acquisition activity outweighed concern that central banks will taper stimulus measures. U.S. futures climbed while Asian shares were little changed.
Kabel Deutschland Holding AG jumped 8.4 percent after Vodafone Group Plc confirmed that it approached the German company about a takeover. British Sky Broadcasting Group Plc rose 1.9 percent as analysts said News Corp. may make another offer for the company. Severn Trent Plc (SVT) tumbled the most since July 2009 after a consortium of investors dropped their bid for the water utility.
The benchmark Stoxx Europe 600 Index (SXXP) gained 0.5 percent to 293.26 at 11:45 a.m. in London. The gauge has still lost 5.6 percent since May 22 amid speculation the Federal Reserve will taper its bond-buying program that helped drive the measure to its highest level since June 2008.
“I’ve been waiting for M&A for so long; companies have strong balance sheets so that they have the wherewithal to do it, but it’s whether they have the confidence,” Kevin Lilley, a fund manager at Old Mutual Asset Managers U.K. in London, which oversees about $6.1 billion, said in a telephone interview. “I would expect to see more activity in the coming months.”
The MSCI Asia Pacific Index rose 0.1 percent today, after a rout that wiped out about $400 billion from the value of global equities yesterday. Contracts on the Standard & Poor’s 500 Index futures advanced 0.5 percent after the equity gauge fell for a second day.
Germany’s top court continues its two-day hearing to address the European Central Bank’s Outright Monetary Transactions program and the European Stability Mechanism. The ECB’s top two German officials yesterday gave opposing evidence at the Federal Constitutional Court in Karlsruhe as judges consider the legality of the OMT bond-buying program….”