STOCK MARKET WATCH -- Friday, 11 July 2014

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34. European Stocks Rise, Rebounding From Five-Day Decline

http://www.bloomberg.com/news/2014-07-11/europe-equity-index-futures-rise-after-5-day-stock-slump.html

European stocks rose, rebounding from a five-day slump, as takeover activity increased and investors bet the financial troubles of Banco Espirito Santo SA won’t spiral into an euro-area banking crisis. U.S. index futures also advanced, while Asian shares fell.

Imperial Tobacco Group Plc gained 2.9 percent after confirming talks with Reynolds American Inc. and Lorillard Inc. to buy some assets and brands. Symrise AG climbed after a report that Japan’s Ajinomoto Co. may be interested in buying the German maker of flavors and fragrances. Indesit Co. added 2.9 percent after Whirlpool Corp. agreed to pay $1 billion for a controlling stake in Italian appliance maker. Banco Espirito Santo dropped 3.9 percent as it resumed trading after a suspension yesterday afternoon and this morning.

The Stoxx Europe 600 Index rose 0.3 percent to 337.27 at 11:49 a.m. in London. The benchmark gauge has lost 3.1 percent this week as investors weigh valuations near the highest level since 2009. Standard & Poor’s 500 Index futures climbed 0.2 percent today, while the MSCI Asia Pacific Index slid 0.3 percent.

“We are looking for a rebound after a sharp selloff in the European markets over the last week,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “Portugal is down over 8 percent in a week on banking fears. The move looks overdone. Banco Espirito Santo appears to be an isolated incident.”