European stocks advance for second day amid speculation growth to continue

European stocks advanced for a second day amid speculation the global economy will continue to grow. Asian shares climbed while U.S. index futures fell.

Royal Bank of Scotland Group Plc (RBS) and Barclays Plc (BARC) led a rally in U.K. lenders. Ipsen SA (IPN), the French maker of a Botox rival, gained 6.1 percent after reporting increased profit. Bunzl Plc (BNZL), the world’s biggest distributor of disposable tableware and food packaging, added 2.4 percent after earnings also gained.

The Stoxx Europe 600 Index rose 1.3 percent to 231.22 at 8:16 a.m. in London. The gauge has still tumbled 13 percent this month, the biggest drop since October 2008, as European and U.S. economic reports trailed forecasts, adding to concern that the global economic recovery is at risk.

The decline has left the measure trading at about 9.7 times estimated earnings, near the cheapest since March 2009, data compiled by Bloomberg show.

“As a rather torrid August draws to a close, an upbeat mood does seem to be settling on the market,” said Cameron Peacock, a market analyst at IG Market in Melbourne. “Whether this can be sustained is likely to rest on the data. U.S. consumer confidence and the Federal Open Market Committee meeting minutes are likely to be instrumental here, although Bernanke’s speech in Jackson Hole last Friday will also still be ringing in the ears of many.”

Source: Bloomberg