European stocks rallied for a fourth day as the fastest growth rate for the U.K. in four years and an unexpected surge in German business confidence overshadowed concern about the results of bank stress tests.

The Stoxx Europe 600 Index rose 0.6 percent to 255.97, extending this week’s advance to 3.2 percent. Stocks briefly erased gains earlier after a draft ECB document showed that the 91 banks being stress-tested by regulators were only examined on European sovereign debt losses for the bonds they trade, rather than those they hold to maturity.

The benchmark Stoxx 600 has fallen 6.1 percent from this year’s high on April 15 amid concern that the recovery may stall as indebted European governments slash spending. Even so, data Friday showed the U.K. economy grew 1.1 percent in the second quarter, almost twice as much as economists forecast. In Germany, the Ifo institute’s business climate index showed the country’s business confidence surged to a three-year high.

National benchmark indexes rose in 10 of the 18 western European markets Friday. The U.K.’s FTSE 100 gained 3% for the week, while Germany’s DAX advanced 2.10 percent, and. France’s CAC 40 gained 3.05 percent.

Results from the stress tests were published after Brussels time closing Friday. Regulators are scrutinizing banks to assess if they have enough capital, defined as a Tier 1 ratio of at least 6 percent, to withstand a recession and sovereign-debt crisis, according to a document from the Committee of European Banking Supervisors. Lenders that fail the trials will be made to raise additional capital. Just seven European banks failed the health check and were ordered to raise their capital by 3.5 billion Euro, much less than expected, confirming fears the continent’s long-waited stress test was too soft.  Out of these seven banks five of Spain’s small regional lenders, known as cajas, failed the test.

Hypo Real Estate was the only German lender to flunk, and state-controlled ATE bank the only Greek one.