European stocks rise as drugmakers climb

London - Gains across most industry groups boosted European stocks toward their highest levels in a month.

Health-care shares were among the biggest contributors to an advance in the Stoxx Europe 600 Index, with Shire and Novartis up at least 0.9%.

Banco Popolare added 1.8% as Goldman Sachs Group Inc. maintained a buy rating on the firm after lowering its profit estimates for Italian lenders through 2020.

The Stoxx 600 rose 0.3% at 10:14. Banks dragged the benchmark lower yesterday, before data showing an improvement in US durable-goods orders helped trim most of its losses.

Companies in the European gauge trade at 14.2 times estimated profits, about 16 percent lower than those in the S&P 500 Index. The gap between the two is the widest since European Central Bank President Mario Draghi pledged to do whatever it takes to save the euro.

While his stimulus programme has helped boost the region’s shares for four years, the benchmark gauge is now heading for its worst annual performance since the peak of the sovereign-debt crisis in 2011.

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