European stocks climbed, with the benchmark Stoxx Europe 600 Index trading close to the highest level since September 2008, on speculation that economic growth is gathering pace. U.S. futures and Asian shares also rose. Skanska AB, the Nordic region’s biggest builder, rallied 3.3 percent after selling a stake in a Chilean venture. Smith & Nephew Plc slid 1.7 percent as Europe’s largest maker of shoulder and knee implants got a warning letter from the U.S. Food and Drug Administration. The Stoxx 600 climbed 0.2 percent to 280.32 as of 10:34 a.m. in London, as more than two companies rose for every one that fell. Futures contracts on the Standard & Poor’s 500 Index expiring in March rose 0.2 percent, while the MSCI Asia Pacific Index jumped 0.7 percent to a 2 1/2-year high. “Our sense is that the pace of growth in the U.S. industrial economy is accelerating and that corporate confidence is rising,” said Andrew Dalton, who oversees $1.8 billion as the chief investment officer at Dalton Strategic Partnership in London. “Equity markets remain relatively cheap.” The Stoxx 600, which last week capped its longest stretch of weekly gains since April, has surged 10 percent this year as better-than-estimated U.S. data bolstered confidence in the economic recovery. The rally last week wiped out losses for the benchmark gauge since the bankruptcy of Lehman Brothers Holdings Inc. in September 2008. Stimulus Measures Stocks advanced yesterday as a surge in U.S. holiday spending overshadowed reports showing that consumer confidence unexpectedly fell and home values dropped. Data tomorrow from the Institute for Supply Management-Chicago Inc. is forecast to show that businesses in the U.S. expanded in December for a 15th consecutive month. Additional stimulus measures by the Federal Reserve, which is preparing to buy notes today, have fueled speculation the recovery will strengthen into next year. Volumes in stocks traded have tumbled this week amid the Christmas and New Year holidays. Yesterday about 432 million shares of companies in the Euro Stoxx 50 Index changed hands, compared with the daily average volume for the year of 1.38 billion, according to data compiled by Bloomberg. Skanska gained 3.3 percent to 135.3 kronor after selling its 50 percent share in PPP highway Autopista Central to Alberta Investment Management Corporation of Canada. Skanska will book a gain after tax of about 5 billion kronor ($731 million). Hochschild Mining Plc jumped 3.9 percent to 648 pence. The London-based miner said it signed a joint venture agreement with International Minerals Corp. to develop the Inmaculada gold and silver project in southern Peru. Smith & Nephew slid 1.7 percent to 674.5 pence after the company got a warning letter from the FDA saying it failed to properly test medical devices. Desire Petroleum Plc slumped 21 percent to 47.75 pence, the lowest price since May. The U.K. energy explorer said it found no hydrocarbons in its Jacinta prospect and will now drill deeper to evaluate the Dawn prospect. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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