European Stocks Rebound From Three-Week Low

European stocks climbed, rebounding from a three-week low, as investors weighed data on U.S. economic growth and house sales to gauge the Federal Reserve’s view on continuing stimulus measures.

Lonmin Plc and Fresnillo Plc both rallied at least 5.5 percent as precious metals climbed. Genmab A/S jumped to its highest price since August 2009 after its Arzerra cancer treatment met its objective in a trial. Tate & Lyle Plc paced declining shares after earnings missed analyst estimates.

The Stoxx Europe 600 Index added 0.4 percent to 303.55 at the close. The measure dropped 1.9 percent yesterday amid concern that the Federal Reserve will taper its bond purchases as the economy strengthens. The gauge is heading for a 2.3 percent advance in May, extending its longest streak of monthly gains since 1997.

“You have to be careful not to be too bearish,” Stewart Richardson, who helps oversee $100 million as chief investment officer at RMG Wealth Management LLP, told Manus Cranny on Bloomberg Television in London. “There are going to be bad days in the market, but there is that belief that the Federal Reserve can always step in.”

In the U.S., the Commerce Department said that the economy grew at a 2.4 percent annualized rate in the first quarter. It had earlier estimated that gross domestic product expanded at a 2.5 percent pace in the period.

The index of pending house sales rose 0.3 percent after a 1.5 percent advance in March, separate figures from the National Association of Realtors showed. Economists in a Bloomberg survey forecast the April gain would match the prior month’s increase.

Benchmark Indexes

National benchmark indexes climbed in eight of the 17 western-European markets that were open today. The U.K.’s FTSE 100 rose 0.5 percent, while Germany’s DAX added 0.8 percent and France’s CAC 40 gained 0.6 percent. Trading in Vienna was closed for a holiday.

Lonmin led a rally in precious-metal producers, climbing 5.9 percent to 287 pence in London. Fresnillo advanced 6.2 percent to 1,156 pence, for its biggest advance in six weeks, and Randgold Resources Ltd gained 5.8 percent to 5,225 pence.

Genmab jumped 6.8 percent to 208.50 kroner. A study found that chronic lymphocytic leukemia patients given Arzerra in combination with a second medicine lived 9.3 months longer without their condition worsening. A total of 447 patients were treated in the phase 3 trial, the last required before seeking regulatory approval.

Saft Groupe SA gained 2.5 percent to 18.37 euros after the maker of batteries for the aerospace industry entered an agreement with Schneider Electric SA to collaborate on supplying electrical-energy storage systems for commercial and industrial buildings. Schneider rose 2.5 percent to 61.64 euros.

Semiconductor Inventory

STMicroelectronics NV, Europe’s biggest semiconductor maker, rose 2.1 percent to 7.34 euros in Paris and Infineon Technologies AG, the second largest, increased 3.3 percent to 6.61 euros. JPMorgan Chase & Co. wrote in a report to clients that changes in the semiconductor industry’s inventory looked “supportive for a continuing up-cycle.”

Pirelli & C. SpA climbed 3.1 percent to 8.86 euros after Goldman Sachs Group Inc upgraded Europe’s third-largest tiremaker to neutral from sell, citing valuations.

Faurecia, which makes car interiors, added 3.8 percent to 16.97 euros after Goldman added the company to its “conviction buy” list.

Tate & Lyle dropped 1.5 percent to 836.5 pence as the maker of the artificial sweetener Splenda reported full-year sales of 3.26 billion pounds ($5 billion). That missed the average analyst forecast of 3.28 billion pounds.

SBM Offshore NV declined 2.3 percent to 14.10 euros after Morgan Stanley lowered its recommendation for the oil services company to underweight, the equivalent of a sell rating. Analysts cited the stock’s 37 percent rally so far this year.

Tesco Plc also fell after JPMorgan downgraded the U.K’s biggest retailer to neutral from overweight, citing a cautious view on British food retailers. The stock lost 1.5 percent to 367.25 pence.

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