European shares advanced for a second week

European shares advanced for a second week as investors speculated that corporate profits and improving macro-economic data to overcome the crisis in the region of sovereign debt.

Prudential Plc led gains as UBS AG recommended the largest insurer in Britain. Bank of Ireland Plc jumped 22 percent that lawmakers backed the Irish government's budget. Burberry Group Plc rose amid takeover speculation. ASML Holding NV rose 7.2 percent after the company raised its outlook for bookings in the fourth quarter.

The benchmark Stoxx Europe 600 Index gained 1.9 percent this week, extending a 1.6 percent advance last week. It is the first week of five days from June to the European benchmark. The index has risen 8.8 percent this year, corporate profits rose, the Federal Reserve announced a program of 600 billion U.S. dollars of bonds with an option to purchase to help the U.S. economic recovery and rescued the European Union, Greece and Ireland.

"In the medium term, it makes sense to invest in equities, especially from Europe," said Markus Steinbeis, head of portfolio management in Unterfoehring, Germany-based unit KGmbH Pioneer Investments, which oversees about 221 billion U.S. dollars worldwide. "The market valuation is reasonable. We see positive results in 2011, but volatility will remain."

European shares rise 12 percent by the end of 2011 as rising incomes and historically low interest rates to help businesses overcome the sovereign debt crisis, a survey of 13 strategists shows. Goldman Sachs Group Inc., the most optimistic forecaster, said that the Stoxx 600 will join the 20 percent, because the benefits can extend twice as fast as the rate of 14 percent over 26,000 average analyst estimates compiled by us.

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Federal Reserve chairman, Ben S. Bernanke said the economy barely expands to a more sustainable pace and that it is possible that the Fed could expand the purchase of bonds beyond the $ 600 billion announced last month to stimulate growth.

The purchase of more bonds than expected is "certainly possible", said Federal Reserve chairman, Ben S. Bernanke, in an interview broadcast by CBS Corp. s' "60 Minutes" program. "It depends on the effectiveness of the program" and the outlook for inflation and the economy.

European finance ministers ruled out immediate aid to Portugal and Spain, or an increase of 750 million euros ($ 999 billion) fund crisis, European bond purchases telling the central bank to calm the debt markets and scared. German Chancellor Angela Merkel and French President Nicolas Sarkozy, said he was opposed to increasing the bailout fund and sets bonds rejected the euro area.

U. K. Manufacturing

In the UK, a report showed manufacturing expanded in October, double what economists forecast, a sign that economic recovery maintains its momentum in the fourth quarter. In Germany, Europe's biggest economy, industrial production increased almost three times more than economists forecast in October, driven by demand for investment goods such as machinery.

Fewer Americans filed first-time claims for unemployment insurance payments last week, showing the labor market continues to improve. Meanwhile, President Barack Obama said he is committed to keeping the Bush cuts taxes for high income taxpayers in exchange for extending federal unemployment benefits and cut the payroll tax by $ 120 million in one year.

Confidence among U.S. consumers increased more than expected in December to the highest level in six months at the same time, Americans began to increase holiday spending. The index of Thomson Reuters / University of Michigan preliminary consumer sentiment rose to 74.2 from 71.6 in late November. Economists expected a December reading of 72.5, according to the median estimate in a survey.

National Benchmarks

national reference rates increased in all 18 western European markets except Finland and Sweden. The French CAC 40 Index rose 2.9 percent. Britain's FTSE 100 Index gained 1.2 percent while Germany's DAX rose 0.8 per cent rate. Portugal PSI 20 Index and Ireland's ISEQ index posted the best results, both rising more than 3 percent.

European insurance companies recorded the best performance among 19 industry groups, increasing by 4.7 percent. Prudential rose 9.7 percent in UBS shares added to its European "key calls" list.

S & P yesterday raised its outlook on U.S. life insurers to "stable" from "negative", saying the industry can cut aside next year after raising funds in the stock and bond sales. Zurich Financial Services AG, Switzerland's biggest insurer, rose 4.4 percent, while Axa SA, France's largest insurer, rose 8.1 percent.

Irish banks

Bank of Ireland Plc rose 21 percent, extending last week's 22 per cent increase. Irish Finance Minister Brian Lenihan won the support of legislators in the first votes in its budget of 6 million euros to tackle what he called the "worst crisis in our history."

Moreover, J. Christopher Flowers, founder of New York private equity firm JC Flowers & Co., said it was continuing the search for Irish banking assets.

"If we can find the right opportunity to invest in Spain, we would do it," he said in an interview.

Alstom SA rose 9.2 percent, the biggest weekly rise since July 2009 as a global manufacturer of power-equipment third largest, said it has signed a long-term cooperation with the Ministry of Railway of China to develop the rail infrastructure in the second largest economy in the world and some international markets.

Burberry, the largest UK retail estate, rose 2.7 percent on speculation that PPR SA, the French owner of Gucci and Puma brand, you can submit a bid.

"There have been reports that PPR was close to a deal to sell Conforama Steinhoff," said Peter Farren, an analyst at Bryan Garnier & Co. "That would fuel speculation in Burberry." Charlotte Judet declined spokesman PPR, for comment.

PPR, ASML

PPR said on 06 December is in talks with "several" investors on the sale of its unit Conforama, including Steinhoff International Holdings Ltd., the largest furniture manufacturer in Africa.

ASML rose 7.2 percent as the largest European manufacturer of semiconductor equipment said it now expects reserves to more than 2 million euros.

Hochtief AG rose 8.1 percent as the Financial Times Deutschland reported that potential new investors Qatar Holding LLC plans to increase its stake in German construction company above the 9.1 percent announced.

Deutsche Postbank AG lost 7.2 percent. Shares of retail lender will leave the German MDAX index benchmark for midsize companies on 8 December after its share trading free stock dropped below 10 percent.

Carmakers showed the worst performance in China said it would end tax incentives for the purchase of cars next year. Volkswagen AG, the largest European carmaker, fell 4.6 percent, while Bayerische Motoren Werke AG, the world's largest maker of luxury cars, fell 1.8 percent.

Fiat, De La Rue

Fiat is advanced by 6.7 percent in Mediobanca values maintained its "outperform" recommendation for the automaker, saying that "the separation between Fiat Auto and Fiat's industrial might trigger M & A appetite."

Agco Corp. Italian daily MF reported that he is interested in purchasing decisions of Fiat tractor, CNH Global, citing CEO Martin Richenhagen.

De La Rue Plc jumped 29 percent, the biggest weekly rise since 2002. world's largest banknote printer rejected a takeover approach 896 million pounds (1.4 million) closely held rival, François-Charles Oberthur Fiduciaire SA.