Europe Stocks Rise as Output, Sentiment Outweigh Earnings

European stocks advanced for a third day as better-than-expected euro-area manufacturing and consumer confidence data outweighed disappointing earnings from companies including Michelin & Cie.

The Stoxx Europe 600 Index rose 0.7 percent to 328.26 at the close of trading. The gauge, which earlier lost as much 1.1 percent on worse-than-forecast corporate results, was boosted by a report showing Germany led euro-area manufacturing back to growth this month. It extended gains after the euro-region sentiment data beat forecasts.