European Stocks Rise as German Sentiment Improves; Danone Jumps

European stocks rose to the highest level in three weeks as German economic sentiment improved more than forecast and Danone SA rallied after reporting earnings.

Danone, the world’s largest yogurt maker, surged the most since May 2010 after also announcing job cuts. Drax Group Plc climbed to a four-year high as the operator of Britain’s biggest coal-fired power station posted profit that topped projections. Bayer AG added 3.6 percent after beginning a new drug trial. Vodafone Group Plc sank to a four-week low as Sanford C. Bernstein & Co. downgraded the shares.