Feb. 5 (Bloomberg) -- European energy stocks rose to highest in a month, led by BP Plc and Total SA after crude oil advanced for a second day.

Credit Suisse Group slid after ING Groep NV downgraded the shares following a ``good run.'' Ryanair Holdings Plc climbed the most in two years after Europe's biggest discount carrier raised its forecast following earnings that topped analysts' estimates.

The Dow Jones Stoxx 600 Index added 0.1 percent to 379.42. The Stoxx 50 gained 0.1 percent, and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, was little changed.

Stocks returned a six-year high last week as bid speculation fueled gains by retailers and construction companies, and the Federal Reserve signaled U.S. economic growth wasn't triggering inflation. A rebound in oil to the highest this year and better- than-expected earnings from Shell and Exxon Mobil Corp. have buoyed energy companies' shares.

``We may have seen the lowest levels for oil for some time, a rebound was due,'' said Farners Esparch, an analyst at Riva y Garcia SA in Barcelona, Spain, which manages $530 million. ``Add to that some positive earnings from the industry in recent sessions, and oil stocks are back in the radar.''

National indexes rose in 13 of the 18 western European markets. The U.K.'s FTSE 100 and France's CAC 40 both increased 0.1 percent. Germany's DAX dropped 0.2 percent.

BP, Europe's second-largest oil company, added 1.2 percent to 541.5 pence. Goldman, Sachs & Co. raised its recommendation on the stock to ``buy'' from ``neutral.'' BP reports earnings tomorrow.

Highest This Year

Total, the region's largest oil refiner, added 0.7 percent to 53 euros. Saipem SpA, the second-biggest oilfield-services company, gained 1.9 percent to 19.09 euros. The Stoxx 600 Oil & Gas Index climbed 0.9 percent to the highest since Jan. 3.

Oil rose, approaching $60 a barrel in New York, as colder weather over most of the U.S. increased heating-fuel demand. Crude for March delivery climbed as much as 3 percent to $59.02 a barrel on Feb. 2, the highest close since Dec. 29. The contract recently traded up 0.9 percent at $59.57.

Credit Suisse dropped 0.7 percent to 88.1 Swiss francs. ING analysts downgraded the stock to ``hold'' from ``buy,'' citing limited potential for price gains. The shares surged 18 percent in the fourth quarter 2006 and have gained 2.9 percent so far this year.

Ryanair jumped 6.8 percent to 11.98 euros. The company increased its full-year forecast after third-quarter profit unexpectedly increased 30 percent on higher fares and baggage charges. Net income rose to 47.7 million euros ($61.7 million) for the three months ended Dec. 31. The figure was more than the median estimate of 21 million euros by nine analysts surveyed by Bloomberg.

Missing Estimates

Faurecia SA tumbled the most in six months, losing 5.5 percent to 51.1 euros. Europe's largest maker of automotive interiors said its second-half loss unexpectedly widened after writing down some interiors business assets for a second year and taking a charge for job cuts.

Vivendi SA, owner of the world's largest music company, said it expects costs against operating profit of 350 million euros ($453 million) to combine Canal Plus Television Par Satellite. The shares dropped 1 percent to 31.41 euros.

Havas SA, the world's sixth-largest advertising company, dropped 3 percent to 4.48 euros. Revenue fell to 410 million euros in the fourth quarter. Sales were seen at 425.2 million euros, based on a Bloomberg survey.

Profit Growth

``Earnings reports are mixed and outlooks have been cautious,'' said Xavier Delaye, a fund manager at DNCA Finance in Paris, which oversees $1.6 billion in equities. ``The market has risen a lot. There's now some locking in of gains. We're relatively cautious.''

Profit growth for companies in the Stoxx 600 will likely fall to an average 10.5 percent in 2007, according to estimates compiled by FactSet Research Systems Inc. in London. That compares with a forecast 13 percent for last year.

Ericsson AB climbed 2.5 percent to 26.4 kronor, rebounding from four-month low. ABN Amro Holding NV raised its recommendation on shares of the world's largest maker of wireless networking equipment to ``hold'' from ``sell'' on valuation grounds. The stock slumped the most in nine months on Feb. 2 after the company cut its growth forecast for the mobile equipment market this year.

Separately, Ericsson shares were increased to ``buy'' from ``hold'' by analyst Chris Umiastowski at TD Newcrest.

Barratt Developments Plc advanced 4.2 percent to 1,279 pence. The U.K.'s biggest homebuilder by volume said it will pay 2.2 billion pounds ($4.32 billion) for Wilson Bowden Plc. The Financial Times reported the news earlier today. Wilson Bowden shares fell 1.6 percent to 2,275 pence, valuing the company at 2.15 billion pounds.

Bird Flu

L.D.C. SA, which processes and sells poultry products, fell 5.2 percent to 73.2 euros. U.K. vets have begun to slaughter more than 150,000 turkeys to stem an outbreak of the deadly H5N1 strain of avian influenza at a farm in the east of England, Britain's first recorded case of the disease in poultry.

Renewable Energy Corp ASA, a Norwegian maker of components for solar-energy products, plunged 11 percent to 141 kroner, leading declines in the Stoxx 600. Good Energies Investments BV, the company's largest stakeholder, sold shares at a 34 percent discount, the companies said today.

Atos Origin SA sank 2.2 percent to 43.32 euros. The supplier of computer services for the Olympic Games will take a charge of as much as 400 million euros after margins declined in the U.K. and Italy.

Upgrade

BT Group Plc gained 2.2 percent to 315.75 pence. Dresdner Kleinwort raised its recommendation on shares of the U.K.'s largest phone company to ``buy'' from ``hold.'' Citigroup Inc. increased its price estimate on the stock to 335 pence from 315.

Separately, Credit Suisse Group may give the contract for all of its telecommunications needs to BT in a deal worth $1.8 billion over seven years, the Financial Times said, citing unidentified people close to the situation.

Q-Cells AG jumped 20 percent to 50 euros. The German solar-cell maker said net income rose to 87.7 million euros in 2006 from 39.9 million euros a year earlier.

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

Last Updated: February 5, 2007 12:11 EST