Nov. 14 (Bloomberg) -- European stocks gained, trimming this week's retreat in the Dow Jones Stoxx 600 Index, as European Aeronautic, Defence & Space Co. and Vinci SA reassured investors on the outlook for earnings.

EADS advanced 3.7 percent after saying it will earn more than previously forecast, while Vinci, the world's biggest builder, climbed 4.1 percent on higher sales. BP Plc, Europe's second-largest oil company, jumped 3.6 percent, and Anglo American Plc, the world's fourth-biggest diversified mining company, rallied 3.5 percent.

The Stoxx 600 added 0.8 percent to 205.75 at the close, trimming its loss this week to 6.3 percent. Oil, mining and insurance stocks led gains among the gauge's 19 industries.

``There's a return to certain stocks that have suffered,'' said Nathalie Pelras, a fund manager at KBL Richelieu Gestion in Paris, which oversees $5.1 billion. ``Even with this significant rally, valuations are still far lower than they were'' last week.

The Stoxx 600 Basic Resources Index closed yesterday valued at 4 times earnings of the companies in the index, compared with 3.8 times profit on Oct. 27, the cheapest on record. The Oil & Gas Index traded at 5.3 times earnings, compared with 5.1 times profit last month.

National benchmark indexes advanced in all of the 18 western European markets except Finland, where Nokia Oyj led declines, and Belgium. The U.K.'s FTSE 100 added 1.5 percent. Germany's DAX jumped 1.3 percent and France's CAC 40 rose 0.7 percent.

Worst Crisis

More than $30 trillion has been erased from the value of global equity markets this year as credit losses and writedowns totaled $968 billion in the worst financial crisis since the Great Depression.

Analysts have slashed earnings estimates as the credit- market turmoil spread, pushing economies into recession. Profit for companies in the Stoxx 600 will fall 8.4 percent this year, according to data Bloomberg compiled as of Nov. 7. That compares with an estimate for 11 percent growth at the start of the year.

Earnings at companies in the S&P 500 that have reported third-quarter results dropped 17 percent on average, according to Bloomberg data. Analysts expect an 8.5 percent decline in full- year profits, estimates compiled by Bloomberg show.

A report today showed Europe's economy fell into its first recession in 15 years in the third quarter, paving the way for deeper cuts to interest rates and taxes. Gross domestic product in the 15 euro nations shrank 0.2 percent in the third quarter from the previous three months, when it also contracted 0.2 percent. The figure matched economists' estimates in a Bloomberg survey.

Washington Summit

A two-day summit on the global economic crisis begins today in Washington with world leaders likely to agree on little more than trying to spend their way out of a global recession. European leaders are demanding greater state controls over financial markets. President George W. Bush takes a narrower view.

Companies from EADS and Vinci to Vivendi SA rallied as their results bolstered confidence in profit outlooks.

EADS advanced 3.7 percent to 12.31 euros. The continent's largest aerospace company raised its 2008 earnings forecast after an increase in Airbus A380 deliveries and smaller charges helped restore profit in the third quarter.

Vinci climbed 4.1 percent to 28.80 euros. The builder said third-quarter sales rose 10 percent to 8.96 billion euros and maintained its full-year growth target after acquisitions in energy services to counter a slowdown in toll-road revenue. Analysts estimated sales of 8.65 billion euros in a Bloomberg survey.

Rising Profit

Vivendi gained 2 percent to 20.39 euros. The owner of the world's largest music company repeated a forecast that net income excluding the effect of acquisitions will rise 8.3 percent this year.

BP rose 3.6 percent to 488 pence. Royal Dutch Shell Plc, Europe's biggest oil company, gained 3.5 percent to 1,675 pence.

Crude oil climbed 3.7 percent yesterday to $58.24 a barrel on the New York Mercantile Exchange, and gained as much as 3 percent before losing 3.7 percent at $56.11 as of the close of equities markets in Europe.

Anglo American added 3.5 percent to 1,291 pence. Copper surged the most in a week in New York, and jumped by the exchange-imposed daily limit in Shanghai.

Copper futures for December delivery climbed 8.95 cents, or 5.5 percent, to $1.7135 a pound in New York.

Nokia

Nokia slumped 3.7 percent to 9.95 euros. The world's largest maker of mobile phones said industrywide handset sales will be lower this year than previously anticipated.

Vallourec SA climbed 7 percent to 83.80 euros. The second- largest maker of steel tubes to carry oil and gas said sales will grow at least 6 percent in the second half, from a prior forecast of almost 3.5 percent.

Continental AG surged 27 percent to 37.27 euros. Schaeffler Group, which is acquiring Europe's second-largest auto-parts maker, said it will complete the filing of the deal with European Union antitrust authorities today, reassuring investors that the transaction will go ahead as planned.

EFG International jumped 17 percent to 19.35 francs. The Swiss private bank whose largest shareholder is the Latsis family said profit for the first 10 months of the year is higher than in the same period last year after ``strong'' inflows since July.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: November 14, 2008 12:04 EST