European stocks advanced, paring their biggest weekly decline since November, as the region’s commodity producers rebounded from a 3 1/2-year low.
Eurasian Natural Resources Corp. posted its biggest gain since 2008 after one of the founding shareholders said he may offer to buy the company. L’Oreal SA climbed 4.3 percent after revenue exceeded analysts’ estimates. SAP AG retreated 3 percent after the largest maker of business-management software reported sales that trailed forecasts.
The Stoxx Europe 600 Index added 0.5 percent to 285.21 at the close of trading in London, after earlier rallying as much as 1 percent. The gauge has slipped 2.5 percent this week, its biggest drop in five months, as commodities fell amid worse-than-forecast economic data from China and the U.S.
“I believe in the growth story,” said Kevin Lilley, who helps oversee about $6.1 billion as a fund manager at Old Mutual Asset Managers U.K. in London. “I have been adding some cyclicality to my portfolio. We reached all-time highs in the U.S. equity market at a time when some of the economic data has been slightly disappointing, so it’s not surprising that the market has taken a breather this week.”
National benchmark indexes climbed in 15 of the 18 western-European markets. The U.K.’s FTSE 100 rose 0.7 percent, while France’s CAC 40 climbed 1.5 percent. Germany’s DAX retreated 0.2 percent. Italy’s FTSE MIB Index increased 1.8 percent, while Portugal’s PSI 20 Index jumped 2.6 percent.
ENRC surged 27 percent to 291 pence after Alexander Machkevitch said he may form a consortium with fellow shareholders Alijan Ibragimov, Patokh Chodiev and the Kazakh government to make an offer for ENRC.
Kazakhmys Plc, which owns a 26 percent stake in ENRC, soared 24 percent to 385.7 pence.
Anglo American Plc gained 2.2 percent to 1,596.5 pence after reporting that first-quarter production at its Kumba Iron Ore Ltd. unit in South Africa increased 2 percent from a year earlier. The metal producer also said that its output of metallurgical coal for export rose 23 percent, while copper production climbed 1 percent.
Rio Tinto Group added 1.5 percent to 2,920 pence as the world’s second-largest raw-materials producer helped lift a gauge of mining companies from its lowest level since July 2009. Vedanta Resources Plc, the Indian metals producer run by billionaire Anil Agarwal, rose 6.1 percent to 1,151 pence.
L’Oreal gained 4.3 percent to 126.40 euros in Paris after the world’s largest cosmetics maker reported a 5.1 percent increase in first-quarter revenue to 5.93 billion euros ($7.8 billion) as demand for luxury brands helped counter weakness in professional products. The average of six estimates compiled by Bloomberg had called for sales of 5.85 billion euros.
LVMH Moet Hennessy Louis Vuitton SA rose 2.1 percent to 123.30 euros after Goldman Sachs Group Inc. added the luxury-goods maker to its conviction buy list, saying the stock’s underperformance presented an opportunity to invest. The shares fell 8 percent from April 15 through yesterday after the company reported the slowest growth in sales of fashion and leather products since 2009.
Burberry Group Plc climbed 1.4 percent to 1,299 pence. Goldman Sachs also added the U.K.’s largest luxury-goods maker to its conviction buy list. The brokerage said that Burberry’s fundamentals remain robust.
Banco Popolare SC led Italian lenders higher as the country’s 10-year bond yields declined. Popolare rallied 7 percent to 1.05 euros in Milan. Banca Popolare di Milano Scrl increased 4.7 percent to 52.4 euro cents. And UniCredit SpA, Italy’s biggest bank, climbed 3.6 percent to 3.63 euros.
William Hill Plc added 4.7 percent to 409.1 pence after the U.K. bookmaker reported a 15 percent jump in first-quarter revenue. Online net sales rose 21 percent. Chief Executive Officer Ralph Topping said gross-win margins both online and in its shops remained strong.
In Germany, SAP slid 3 percent to 57.85 euros after posting a 3 percent increase in first-quarter sales of new software licenses, an indicator of future revenue, to 657 million euros. That missed the average analyst estimate of 726 million euros after the company failed to close contracts in the Asia-Pacific region.
Commerzbank AG lost 2.2 percent to 1.14 euros as Germany’s second-biggest bank predicted that it will report a first-quarter loss because of staff-reduction costs. The lender made its forecast in a statement at its annual shareholders’ meeting. Chief Executive Officer Martin Blessing said he expects lower net-interest income in 2013 than in 2012.
TeliaSonera AB lost 2.1 percent to 42.47 kronor after Sweden’s biggest phone company reported first-quarter net income of 4.11 billion kronor ($629 million), little changed from a year earlier. Analysts had predicted 4.32 billion kronor of profit, according to the average of 15 estimates compiled by Bloomberg. Sales fell 4.4 percent.
Elisa Oyj dropped 6 percent to 13.44 euros after Finland’s largest wireless carrier by subscribers reported first-quarter sales and net income that fell short of analysts’ estimates. The company also cut its full-year earnings forecast.
Spectris Plc tumbled 14 percent to 1,908 pence, the biggest plunge on the Stoxx 600, after the maker of production-testing gear lowered its revenue-growth forecast.