Nov. 5 (Bloomberg) -- European stocks advanced for a second day, erasing earlier losses, as U.S. jobless claims and worker productivity beat economists’ forecasts and earnings from BNP Paribas SA to Delhaize Group topped estimates.

BNP Paribas, France’s largest bank, climbed 3.3 percent after third-quarter profit surged 45 percent. Delhaize led retailers higher after the Belgian owner of the Food Lion supermarket chain in the U.S. also raised its forecast. Royal Ahold NV jumped 4.5 percent on speculation a management shakeup may be the retailer’s response to a possible takeover.

The Dow Jones Stoxx 600 Index added 0.6 percent to 240.52 as the European Central Bank and the Bank of England kept their key interest rates unchanged. The benchmark measure for European equities has rallied 52 percent since March 9 on signs that government stimulus policies and record-low interest rates are helping to drag the economy out of recession.

“Earnings and economic data are showing a positive trend,” said Manfred Hofer, head of equity analysis at LGT Capital Management in Pfaeffikon, Switzerland, which oversees about $73 billion. “We’ve had a few backlashes but overall the trend is towards improvement.”

Government reports today showed fewer Americans than forecast filed claims for unemployment benefits last week and the productivity of U.S. workers surged in the third quarter at the fastest pace in six years, topping the highest estimate of economists surveyed by Bloomberg.

‘Extended Period’

Federal Reserve officials yesterday said they will keep interest rates near zero for “an extended period” and specified for the first time that policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline.

National benchmark indexes advanced in all 18 western European markets except Iceland. The U.K.’s FTSE 100 climbed 0.4 percent, France’s CAC 40 increased 1.1 percent and Germany’s DAX added 0.7 percent.

The European Central Bank left its benchmark interest rate unchanged at a record low of 1 percent, as predicted by all 56 economists in a Bloomberg News survey.

The Bank of England maintained its key rate at a record low of 0.5 percent and expanded its asset-purchase program by 25 billion pounds ($41 billion) to 200 billion pounds, less than the median forecast of 225 billion pounds in a Bloomberg News survey of 48 economists.

BNP, Delhaize

BNP Paribas advanced 3.3 percent to 54.36 euros. The lender reported third-quarter net income of 1.31 billion euros ($1.9 billion), helped by the purchase of Fortis assets and a rebound at the investment bank. That beat the 1.26 billion-euro median estimate of 13 analysts surveyed by Bloomberg.

Delhaize surged 5.1 percent to 49.40 euros, leading a gauge of retail shares to the biggest gain among 19 industry groups on the Stoxx 600. The company reported profit that rose more than analysts’ estimates and increased its forecast for the year.

Per-share profits have beaten estimates at 121 of the 201 companies in the Stoxx 600 to have announced results since Oct. 7, according to Bloomberg data. That compares with 339 of the 406 companies in the Standard & Poor’s 500 Index that have topped forecasts during the same period.

Ahold, the Dutch owner of the U.S. Stop & Shop grocery chain, jumped 4.5 percent to 9.10 euros. The retailer said the head of its U.S. Giant-Carlisle unit will return to the Netherlands to run the Albert Heijn chain as part of a shakeup of senior management. The move would allow the chief operating officers of its European and U.S. units, Dick Boer and Lawrence Benjamin, to devote more time to growth opportunities “in existing and new markets.”

ITV, Software AG

“There are stories going around in the market about the press release this morning being Ahold’s answer to a takeover,” said Petercam analyst Fernand de Boer. Ahold never comments on “market rumors,” said spokesman Jochem van de Laarschot.

ITV Plc surged 9.6 percent to 48.8 pence, the steepest gain in the Stoxx 600. The U.K.’s biggest private television company predicted advertising sales will increase in December and said the overall market is “stabilizing.”

Software AG, Germany’s second-largest software maker, rallied 8.2 percent to 67.01 euros after raising its full-year targets for revenue and profit margins after the integration of IDS Scheer AG.

Adecco SA advanced 2 percent to 49.48 Swiss francs. The world’s largest supplier of temporary workers posted third- quarter profit that topped estimates as markets in the U.S. and Europe started to recover and personnel costs fell.

Zurich Financial

Zurich Financial Services AG, Switzerland’s biggest insurer, slid 3.8 percent to 228.5 francs, the steepest drop since May. Third-quarter net income rose to $909 million from $154 million a year earlier, missing the $1.16 billion median estimate of seven analysts surveyed by Bloomberg.

Commerzbank AG sank 4.7 percent to 6.87 euros after Germany’s second-biggest lender predicted a difficult fourth quarter. The bank said it will need to set aside more money for bad loans after earlier this week reporting a third-quarter net loss of 1.05 billion euros.

Genmab A/S plummeted 9.3 percent to 117 kroner after the Danish biotechnology company said it will post a 2009 operating loss of $228 million compared with a previous forecast for a $127 million loss.

SGL Carbon SE slumped 7.9 percent to 23.70 euros. The world’s biggest maker of carbon and graphite products said third-quarter pretax profit slid to 11.1 million euros from 73.6 million euros a year earlier as sales slumped 23 percent.

To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.

Last Updated: November 5, 2009 12:18 EST