European stocks advanced, posting the biggest four-day rally since April, after the International Monetary Fund said it will raise its U.S. growth outlook.

The Stoxx Europe 600 Index climbed 0.7 percent to 323.40 at the close of trading in London. The gauge has rallied 16 percent this year, including the 3.9 percent gain in the past four days. The Stoxx 600 is heading for its biggest annual jump since 2009.

European stocks rose 3.7 percent last week, the biggest rally since April, after the Federal Reserve’s decision to reduce its monthly bond purchases increased investors’ confidence in the strength of the U.S. economic recovery.

The IMF will increase its outlook for the U.S. economy as a budget deal and falling unemployment ease doubts about the future, Managing Director Christine Lagarde said in an interview yesterday on NBC’s “Meet the Press.” The IMF said in October the world’s largest economy would expand 2.6 percent next year. Lagarde didn’t specify new figures. The Washington-based fund usually issues projections in January.

A U.S. report showed the the Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 in December from 75.1 a month earlier. The median forecast of 61 economists in a Bloomberg survey called for 83 after a preliminary reading of 82.5. Consumer spending rose in November by the most in five months, according to a separate report.

National benchmark indexes advanced in 14 of the 18 western-European markets today. France’s CAC 40 added 0.5 percent and Germany’s DAX rose 0.9 percent. The U.K.’s FTSE 100 climbed 1.1 percent.

ARM Holdings increased 3.9 percent to 1,110 pence after Apple’s agreement with China Mobile. Dialog Semiconductor Plc, which got 77 percent of its revenue from the iPhone maker, rose 3.4 percent to 15.68 euros.

Lanxess advanced 4.4 percent to 47.74 euros. CEO Axel Heitmann told Frankfurter Allgemeine Sonntagszeitung that the company will reach its goal of 710 million euro ($972 million) to 760 million euro in earnings before interest, tax, depreciation and amortization before special items, adding he is confident about improving results in 2014.

Orell Fuessli declined 2.2 percent to 88 Swiss francs after saying it will report an operating loss of 20 million francs ($22.3 million) for 2013. It cited special charges at its security-printing unit, which produces Switzerland’s banknotes. On Oct. 1, the company said it was liable for losses incurred by customers in relation to banknotes stolen during production.

Stocks and U.S. equity futures gained as Apple Inc. (AAPL) rallied and the International Monetary Fund indicated it would raise its outlook for the American economy. 

Globalmarkets:

Nikkei 15,870.42 +11.20 +0.07%

Hang Seng 22,921.56 +109.38 +0.48%

Shanghai Composite 2,089.71 +4.91 +0.24%

FTSE 6,661.73 +55.15 +0.83%

CAC 4,197.93 +4.16 +0.10%

DAX 9,464.48 +64.30 +0.68%

Crude oil $99.04 (-0.28%).

Gold $1200.80 (-0.24%).

European stocks advanced for a fourth day, the longest streak in two months, after the International Monetary Fund said it is raising its growth outlook for the U.S. economy. Asian shares and U.S. index futures climbed.

The Stoxx Europe 600 Index climbed 0.2 percent to 321.76 at 9:40 a.m. in London. The index has rallied 15 percent this year and is heading for its biggest annual advance since 2009.

“The positive assessment the IMF gave with regard to U.S. growth corroborates the improving economic indicators we have been witnessing,” said Konstantin Giantiroglou, head of investment advisory at Neue Aargauer Bank in Brugg, Switzerland. “The sentiment going into Christmas and New Year is good. We have an improving global economy and for the first time since the financial crisis we should see a synchronous recovery. We should see a continuation of the bull market in 2014.”

The IMF is raising its outlook for the U.S. economy as a budget deal in Washington and the Fed’s plan to reduce its bond buying ease doubts about the future, Managing Director Christine Lagarde said in an interview yesterday on NBC’s “Meet the Press.” The IMF said in October the world’s largest economy would expand 2.6 percent next year. Lagarde didn’t specify new figures.

A report may show that consumer confidence increased in December. A final reading for the Thomson Reuters/University of Michigan December consumer sentiment index rose to 83, according to the median economist forecast. That compares with a preliminary prediction of 82.5 and a reading of 75.1 in November.

ARM Holdings increased 2 percent to 1,089 pence after Apple (AAPL)’s Chinese agreement.

Lanxess advanced 2.5 percent to 46.89 euros. CEO Axel Heitmann told Frankfurter Allgemeine Sonntagszeitung that the company will reach the company’s goal of 710 million-euro ($972 million) to 760 million-euro Ebitda before special items, adding he is confident about improving results in 2014.

Orell Fuessli declined 4.1 percent to 86.30 Swiss francs after saying it will report an operating loss of 20 million francs ($22.3 million) for 2013, citing special charges at its security-printing unit, which produces Switzerland’s banknotes. On Oct. 1, the company said it was liable for losses incurred by customers in relation to banknotes stolen during production at Orell Fuessli.

FTSE 100 6,631.88 +25.30 +0.38%

CAC 40 4,192.57 -1.20 -0.03%

DAX 9,444.64 +44.46 +0.47%

Asian stocks outside Japan rose after data showed faster-than-estimated economic growth in the U.S. and the International Monetary Fund said it’s raising its outlook for the world’s largest economy.

Nikkei 225 Closed

S&P/ASX 200 5,291.95 +26.73 +0.51%

Shanghai Composite 2,089.71 +4.91 +0.24%

Hyundai Merchant Marine Co., Korea’s second-largest shipping company, surged 15 percent in Seoul after Hyundai Group said it plans to sell assets including financial units and its hotel business for at least 3.3 trillion won ($3.1 billion).

Echo Entertainment Group Ltd. advanced 6.1 percent in Sydney after a managing director of its Star casino resigned.

China Mobile Ltd. added 1.3 percent in Hong Kong after striking a deal with Apple Inc. to sell the iPhone in the world’s largest wireless market.