Bank, steel lead rally

GLOBAL MARKETS

European stocks climbed for a fourth day, paced by banking shares. Steelmakers led gains in Asia.

European stocks advanced for a fourth day, led by DaimlerChrysler AG after Deutsche Bank AG raised its price estimate for shares of the world's second-largest maker of luxury cars.

Barclays Plc rallied after the UK's third-biggest bank said losses from failed debt funds probably won't exceed £75 million ($151 million). Svenska Handelsbanken AB gained after Storebrand ASA, Norway's largest publicly traded insurer, said it will buy the Swedish company's SPP life insurance unit for 18 billion kronor ($2.6 billion). The mergers and acquisitions theme "is going to go on", said Christian Gattiker, head of equity markets at Bank Julius Baer & Company in Zurich.

Posco advanced on speculation steel prices are set to gain and after the Nikkei newspaper reported Japan's Nippon Steel Corp may raise its dividend. The Morgan Stanley Capital International World Index climbed 0.1 per cent to 1,563.84 as of 11:37 a.m. in London.

Europe's Dow Jones Stoxx 600 Index gained 0.3 per cent to 377.09. National benchmarks advanced in 15 of the 18 western European markets. Germany's DAX Index added 0.3 per cent, while France's CAC 40 was little changed. The UK's FTSE 100 increased 0.3 per cent. The US market is closed today for the Labor Day holiday.

"Corporate news is still very good," said Mike Lenhoff, who helps oversee about $36 billion as chief strategist at Brewin Dolphin Securities Ltd. in London. "Markets will settle and resume their upward trend."

DaimlerChrysler climbed 2.6 per cent to ¤66.90 after Deutsche Bank raised its share-price estimate for the German carmaker by 16 per cent to ¤100.

Barclays climbed 2.9 per cent to 631.5 pence, the biggest advance since August 17. The UK lender appealed to central banks to help restore confidence in money markets. It's the responsibility of central banks to improve the stability of the market for short-term loans, President Robert Diamond told the Sunday Telegraph. The comments were confirmed by spokesman Ian Bowen.

Svenska Handelsbanken rallied 7.6 per cent to 206 kronor, the highest since June 5. Storebrand, Norway's largest publicly traded insurer, said it will buy the Swedish' bank's SPP life-insurance unit for 18 billion kronor ($2.6 billion). Storebrand shares dropped 7 per cent to 83.4 kroner.