Europe Stocks Rise on China Figures

European stocks rose, giving the Stoxx Europe 600 Index its first back-to-back gains in three weeks, as China’s industrial production topped forecasts. U.S. index futures and Asian shares advanced.

Nokia Oyj (NOK1V) climbed 3 percent after agreeing to settle all patent litigation with Apple Inc. in a deal that awards a one- off payment and royalties to the Finnish maker of mobile phones. Solarworld AG (SWV) and Q-Cells SE advanced more than 2 percent after a report that LDK Solar Co., a Chinese maker of solar panels, is seeking acquisitions in Germany.

The Stoxx 600 rallied 0.8 percent to 270.73 at 11:04 a.m. in London. The gauge has still fallen 7 percent from this year’s high on Feb. 17 amid concern that the U.S. economic recovery is slowing and as speculation grew that Greece may default on its debt. The measure has declined for six consecutive weeks, the longest stretch of losses since 2008.

“The consolidation phase in equities is close to its end,” Andrew Garthwaite, the head of global strategy at Credit Suisse Group AG in London, wrote in a report today. “We continue to be fundamentally bullish of equities.” Garthwaite increased his tactical allocation on stocks to “overweight.”

Futures on the Standard & Poor’s 500 Index gained 0.8 percent today before reports on retail sales and producer prices. The MSCI Asia Pacific Index climbed 1.1 percent, the first increase in five days.
Chinese Economy

China’s industrial production rose more than estimated in May, while inflation accelerated to the fastest pace in almost three years. Production gained 13.3 percent from the year before, exceeding the median economist forecast of 13.1 percent in a Bloomberg survey. The 5.5 percent annual gain in consumer prices matched estimates.

Stocks pared their advance as China raised the reserve requirement ratio for the nation’s banks by 50 basis points to cool inflation. The world’s second-biggest economy has boosted interest rates four times since September, increased bank reserve requirements to a record and allowed the yuan to gain about 1.6 percent against the dollar this year.

European finance chiefs begin the final stage of hammering out a Greek rescue today to prevent the euro area’s first sovereign default after the country was slapped with the world’s lowest credit rating by S&P.
Greek Meeting

Meeting in Brussels in an emergency session before their monthly gathering next week, euro-area finance ministers are seeking to narrow differences on how investors share the cost of easing Europe’s biggest debt burden. The aim is to wrap up a new financing plan at a government leaders’ summit on June 23-24, a year after Greece received a first bailout package.

S&P downgraded Greece’s credit rating to CCC from B late yesterday, saying “there is a significantly higher likelihood of one or more defaults.”

In the U.S., sales at retailers probably fell in May as car purchases slumped and elevated gasoline costs held back spending on other goods, economists said before a report at 8:30 a.m. in Washington today. At the same time, Labor Department figures may show the producer price index rose 0.1 percent in May after a 0.8 percent gain in April, according to the Bloomberg survey median. Core prices, which exclude volatile food and fuel, may have climbed 0.2 percent following a 0.3 percent advance.

Nokia gained 3 percent to 4.42 euros. Apple will pay Nokia an undisclosed sum as well as royalties for the term of the agreement. The agreement will bolster Nokia’s second-quarter non-IFRS operating margin forecast for the Devices & Services unit, it said. Nokia and Apple are the world’s two biggest mobile phone makers.
Solarworld Climbs

Solarworld advanced 2.7 percent to 9.33 euros, while Q- Cells jumped 3.7 percent to 1.69 euros. LDK Solar is seeking acquisitions in Germany, Handelsblatt reported today, citing an interview with Chief Financial Officer Jack Lai. LDK is mainly focusing on companies with technological knowledge and a good brand image, Lai told the newspaper.

Renewable Energy Corp. ASA jumped 4 percent to 10.90 kroner as the maker of solar-energy products was raised to “neutral” from “sell” at UBS AG. Vestas Wind Systems A/S, the largest wind-turbine manufacturer, rose 3.8 percent to 151.90 kroner as Societe Generale SA said in a report that the company may gain from a strong order flow.

Avis Europe Plc (AVE) soared 58 percent to 310.3 pence, the biggest advance in more than two years, after agreeing to be acquired by Avis Budget Group Inc. for 636 million pounds ($1.04 billion).
Glencore Earnings

Glencore International AG, the world’s largest listed commodities trader, dropped 2.1 percent to 512.6 pence even after saying first-quarter profit increased. Glencore said net income adjusted for items increased to $1.3 billion from $886 million a year earlier.

Eurasian Natural Resources Corp. fell 2.3 percent to 758.5 pence as Glencore said it isn’t planning a bid for the producer of metals in Kazakhstan.

GEA Group AG (G1A) surged 3.3 percent to 23.66 euros as the engineering firm whose machines milk a third of the world’s dairy cows was raised to “equal weight” from “underweight” at Morgan Stanley.

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