Europe Stocks Rise After Worst Week in Month; Miners Gain

European stocks pared earlier losses and rebounded from their worst week in a month, led by a rally in miners, while investors weighed violence in Ukraine.

A gauge of basic-resources companies in the region climbed 1.9 percent, with Polymetal International Plc gaining 4.7 percent and Randgold Resources Ltd. adding 3.6 percent. ThromboGenics NV surged 17 percent after people familiar with the matter said Novartis AG and Shire Plc are among drugmakers weighing offers for the Belgian eye-medicine company. PSA Peugeot Citroen slid 6.3 percent after saying it will cut its model lineup by almost half.

The Stoxx Europe 600 Index gained 0.3 percent to 329.79 at the close in London, paring earlier declines of as much as 1 percent. The gauge lost 3.1 percent last week.

“The crisis in Ukraine is adding some volatility to the market, especially considering that there is a real economic risk if the situation escalates further,” Francois Savary, who helps oversee about $9.7 billion as chief investment officer at Reyl & Cie, said by phone from Geneva. “Thursday’s meeting will be key to see if the parties involved are able to find a diplomatic solution to deescalate the situation.”

Europe’s VStoxx Index, a gauge of Euro Stoxx 50 Index options prices, rose 1.1 percent to 18.5 today, the highest level since March 24.

Ukraine Crisis

European officials weighed expanding sanctions against Russia over Ukraine as armed separatists in the eastern part of that nation ignored a deadline to free official buildings they’ve occupied. Russian Foreign Minister Sergei Lavrov denied his country is involved. At least one serviceman was killed in eastern Ukraine over the weekend.

Envoys from Ukraine, Russia, the U.S. and European Union are scheduled to hold talks in Geneva on April 17 to resolve the crisis. Intelligence reports suggest the Russian plan is to split Ukraine into federated regions, some of which may then vote to rejoin Russia, according to two U.S. officials.

Euro-area data showed industrial production climbed 0.2 percent in February after remaining unchanged the previous month. Economists had forecast a 0.2 percent rise.

In the U.S., retail sales rose 1.1 percent last month after gaining 0.7 percent in February, according to a Commerce Department report. The median economist forecast called for a 0.9 percent increase.

National benchmark indexes fell in 10 of 18 western-European markets. The U.K.’s FTSE 100 and Germany’s DAX gained 0.3 percent, while France’s CAC 40 climbed 0.4 percent.

Miners Gain

Basic-resource companies in the Stoxx 600 rose the most among 19 industry groups. Polymetal climbed 4.7 percent to 641 pence, and Randgold advanced 3.6 percent to 4,845 pence.

ThromboGenics surged 17 percent to 22 euros. Novartis is considered the most likely buyer because it already has a partnership to market ThromboGenics’s Jetrea eye medicine outside of the U.S., the people said. Roche Holding AG, Valeant Pharmaceuticals International Inc., Regeneron Pharmaceuticals Inc. and Allergan Inc., are also among potential bidders, they said.

Glencore Xstrata Plc added 2 percent to 317.9 pence after selling its stake in the Las Bambas copper mine in Peru to a group led by China Minmetals Corp. for $5.85 billion. The sale completed the final condition by Chinese regulators for Glencore’s $29 billion takeover of Xstrata Plc.

Marine Harvest ASA climbed 3.8 percent to 69.65 kroner. The salmon farmer reported a higher first-quarter harvest than it had forecast.

Peugeot Falls

Peugeot slid 6.3 percent to 12.83 euros. Europe’s second-largest carmaker also said it will turn the Citroen unit’s DS badge into a separate brand. Operating profit from carmaking will be 2 percent of sales by 2018 and increase to 5 percent in the 2019-2023 period, Peugeot said.

Kuehne & Nagel International AG fell 2.6 percent to 119.70 Swiss francs. The world’s biggest sea-freight forwarder said sales slipped 1.3 percent to 4.13 billion francs ($4.7 billion) in the first quarter. Analysts had predicted 5.22 billion francs on average. Earnings before interest and taxes increased to 190 million francs, less than the 192 million-franc projection.

Symrise AG dropped 2.2 percent to 35.05 euros. The company has offered 1.3 billion euros ($1.8 billion) to buy Diana Group, a French flavors and pet-food additive maker. Symrise has entered into exclusive talks with owner Ardian Sarl, and the deal is expected to be completed in the third quarter, according to an April 12 statement.

Greek Bank

National Bank of Greece slumped 12 percent, the most since June, to 3.26 euros. The country’s biggest lender is planning to increase its share capital by as much as 2.1 billion euros after the national regulator’s stress test identified a shortfall, according to a person with knowledge of the matter. National Bank said last week that it would address its capital needs without raising new equity.

Greece’s ASE Index dropped 3.4 percent for an eighth straight day of losses, the longest streak since April 2012. The gauge surged 16 percent this year through April 2, beating the 2.6 percent increase for the Stoxx 600.

STMicroelectronics NV (STM) fell 3.2 percent to 6.21 euros as UBS cut its rating on the chipmaker to sell from neutral, with analyst Gareth Jenkins citing the stock’s valuation. It traded at 47.1 times estimated earnings at the end of last week and reached 50.6 last month, as the stock climbed to its highest price since September, data compiled by Bloomberg show. The Stoxx 600 traded at 14.4.

TomTom NV, a maker of navigation devices, declined 3.9 percent to 4.69 euros after UBS recommended selling the shares, citing valuations again.

Rheinmetall AG, an automotive and defense-equipment supplier, fell 2.6 percent to 49.31 euros. Bild am Sonntag reported that a sale of 800 Leopard 2 Battle tanks to Saudi Arabia will probably be canceled.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Alan Soughley

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