European Stocks Rise as U.S. Services Data Beat Estimates

European Stocks Rise on Speculation of Global Economic Stimulus
The Stoxx 600 fell yesterday as reports showed that orders to U.S. factories unexpectedly declined in April and growth in China’s services industries weakened in May. Photographer: Hannelore Foerster/Bloomberg

European stocks extended their advance, snapping a four-day decline, as the U.S. services industry expanded at a faster pace than estimated and investors speculated that policy makers will stimulate economic growth.

CaixaBank led Spanish banks higher, rising 2.6 percent after the country’s budget minister said the lenders don’t need an excessive amount of money. BioInvent International AB plunged after it stopped developing an anticoagulant drug.

The Stoxx Europe 600 Index added 0.3 percent to 234.59 at the close of trading. The benchmark measure has still declined 14 percent from its 2012 high on March 16 amid growing concern that Greece will leave the euro currency union. U.K. and Danish markets are closed today for public holidays.

“The market is rebounding with the hope that actions will be taken,” said Yves Maillot, the head of investments at Robeco Gestions SA in Paris, who helps oversee $6.8 billion. “Even if the problems in Europe are taking a while to resolve, we are advancing towards decisions.”

The Stoxx 600 fell yesterday as reports showed that orders to U.S. factories unexpectedly declined in April and growth in China’s services industries weakened in May.

Finance ministers and central bank governors from the Group of Seven economies agreed to coordinate their response to the euro area’s sovereign-debt crisis on a conference call.

G-7 officials said they will work together to help Greece and Spain place their public finances on a sustainable footing, Japan’s Finance Minister, Jun Azumi, told reporters in Tokyo following the call today.

U.S. Service Industries

In the U.S., a report showed that service industries grew in May at a faster pace than economists had predicted. The Institute for Supply Management’s index of non-manufacturing businesses, which covers about 90 percent of the economy, rose to 53.7 from 53.5 in April. That beat the median forecast of economists surveyed by Bloomberg News for a reading of 53.4.

A gauge of euro-area services and manufacturing output contracted in May. A composite index based on a survey of purchasing managers in both industries dropped to 46 from 46.7 in April, London-based Markit Economics said today, compared with an estimate of 45.9 published on June 1. The measure has remained below 50 -- indicating contraction -- for four months.

Separate reports showed that German and French services activity fell in May more than economists had estimated.

An index of Germany’s services industry based on a survey of purchasing managers dropped to 51.8 last month from 52.2 in April, Markit Economics said today. A measure of the industry in France slipped to 45.1 from 45.2 the previous month.

National benchmark indexes climbed in 13 of the 16 western European markets that opened today. Germany’s DAX fell 0.2 percent, while the Swiss Market Index was little changed. France’s CAC 40 advanced 1.1 percent.

Bankinter, CaixaBank Advance

CaixaBank added 2.6 percent to 2.17 euros and Bankinter SA rose 2.3 percent to 2.53 euros.

Spain’s Budget Minister, Cristobal Montoro, said that the European Union should provide financial aid to the banks.

“That’s why it’s so important that the European institutions open up and help us achieve, help facilitate, that figure because we’re not talking about astronomical figures,” he said in an interview with Spanish broadcaster Onda Cero.

Banco Espirito Santo SA jumped 12 percent to 51.8 euro cents. Portugal’s biggest publicly traded bank climbed for a second day after the country’s government said it will give more than 6.6 billion euros ($8.2 billion) to Banco Comercial Portugues SA, Banco BPI SA and Caixa Geral de Depositos SA to help them meet capital requirements.

Telekom Austria, CGGVeritas

Telekom Austria AG surged 4.3 percent to 7.57 euros after News Magazine reported that Carlos Slim, the world’s richest man, has acquired a 4.1 percent stake in the company.

MAN SE soared 9.1 percent to 85 euros, its biggest gain in three years. Volkswagen AG increased its voting rights to 75.03 percent from 73.76 percent previously, the Wolfsburg, Germany-based carmaker said.

VW’s Chief Financial Officer, Hans Dieter Poetsch, said in April that one of the options for pursuing closer collaboration is a domination agreement of MAN giving VW more sway over MAN and access to its cash. The move is possible after VW increases its stake in Munich-based MAN to more than 75 percent, he said.

PostNL NV rose 5.6 percent to 2.83 euros, its biggest advance in two weeks, after the Dutch government outlined a planned pension rule that an ABN Amro Bank NV analyst said may benefit the mail operator’s retirement fund.

CGGVeritas, Zodiac Aerospace

CGGVeritas rallied 5.2 percent to 17.61 euros. The world’s largest seismic surveyor of oilfields was kept as a preferred stock at Societe Generale SA.

Zodiac Aerospace SA, Europe’s biggest maker of airliner furnishings, gained 1.7 percent to 75.24 euros. Exane BNP Paribas said companies with significant export sales will gain from the euro’s weakness against the U.S. dollar.

Elekta AB sank 4.4 percent to 326.90 kronor, its biggest drop in five weeks. The world’s second-largest maker of radiation-surgery equipment reported fourth-quarter sales of

3.12 billion kronor ($432 million), missing the average analyst estimate of 3.22 billion kronor.

BioInvent International tumbled 63 percent to 4.76 kronor. The company and partner ThromboGenics NV stopped work on the drug because it caused too much bleeding in a clinical trial.

Hip or knee surgery patients in a study showed “a significantly higher incidence of bleeding events” from the TB-402 drug than from Bayer AG’s Xarelto, BioInvent and ThromboGenics said in a statement today. ThromboGenics slumped 10 percent to 19.50 euros, its biggest drop since 2007.

EON AG fell 1.2 percent to 14.24 euros, sliding for a seventh day, its longest losing streak since August. Germany’s largest utility said it may lose millions of euros because of irregularities by a former employee at its trading unit.

The volume of shares changing hands on the Stoxx 600 was 55 percent lower than its average over the last 30 days, according to data compiled by Bloomberg.

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