By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets advanced for a
fourth straight day on Wednesday on optimism over outlook the
global economy after the World Bank said growth will pick up pace
in 2014.
The Stoxx Europe 600 index gained 0.6% to 333.14, on track for
the highest closing level since January 2008.
Among stock movers in the pan-European index, shares of Burberry
Group PLC (BURBY) rallied 4.8% after the luxury-goods firm reported
a 14% rise in retail revenue in the third quarter.
Shares of Hennes & Mauritz AB rose 2.1% after the Swedish
fashion retailer said total sales climbed 10% in December.
On a more downbeat note, food producers declined after some
broker downgrades. Shares of Danone SA dropped 1.1% in Paris after
J.P. Morgan Cazenove cut the firm to neutral from overweight, and
Unilever PLC (UL) gave up 1.2% in London after the same bank
downgraded the company to underweight from neutral.
More broadly, investors welcomed a fresh economic-growth
forecast from the World Bank. The institution said it expects
growth world-wide to accelerate at a rate of 3.2% in 2014, led by
high-income economies as they appear "to be finally turning the
corner" after the financial crisis. The estimate is higher than an
earlier forecast of 3% and better than the 2.4% in 2013.
Asia markets closed mostly higher and U.S. stock futures pointed
to a higher open on Wall Street.
In Europe, the German federal statistics office Destatis said
growth in the euro zone's largest economy slowed in 2013 amid the
currency union's crisis. Germany's price-adjusted gross domestic
product expanded 0.4% in 2013 after increasing 0.7% the previous
year, Destatis said.
Germany's DAX 30 index , however, rallied 1.2% to 9,652.21.
France's CAC 40 index rose 0.7% to 4,303.68, and the U.K.'s FTSE
100 index picked up 0.4% to 6,792. 26.
Mining firms rose in London, with Anglo American PLC climbing
4.8% after UBS lifted the company to buy from neutral. Shares of
heavyweight Rio Tinto PLC (RIO) added 1% and Glencore Xstrata PLC
(GLCNF) picked up 0.6%.
Shares of Deutsche Lufthansa AG gained 4.2% to 18.48 euros
($25.18) in Frankfurt after Citigroup pointed to the German
airlines as one of its top picks among European carriers and raised
the target price to EUR26.50 from EUR18.
E.ON SE picked up 1.4% after HSBC upgraded the utility firm to
neutral from underweight as it benefits form financial flexibility
and its presence in non-EU markets.
Allianz SE rose 2.5% after Credit Suisse raised the insurer to
outperform from neutral.
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