Equities up on reports Fed will aid US recovery

Eurostoxx 50: 2,967.78 (+10.00) Frankfurt DAX: 7,128.13 (+69.12) Paris CAC: 4,047.01 (+27.39)EUROPEAN STOCKS rose amid speculation the Federal Reserve will continue to support the recovery, even as growth in the world's largest economy accelerates.

The Stoxx Europe 600 Index rallied 0.9 per cent to 282.53 at the close in London, its biggest advance in more than a week.

The measure has climbed 2.4 per cent in 2011 as reports suggested the global economy is recovering and investors bet that European leaders will increase their efforts to contain the region’s sovereign-debt crisis.

Umicore surged 6.7 per cent to €37.55 as UBS upgraded the Belgian maker of car catalysts to “buy” from “sell”, citing the company’s “leading metallurgical position”.

Parmalat climbed 5.5 per cent to €2.26. The funds Skagen, Mackenzie Financial Corporation and Zenit Asset Management AB, which hold a combined 15.3 per cent of Parmalat, have agreed to present a list of candidates for the company’s board, Ansa news agency reported.

Porsche snapped a five-day decline, rising 7.1 per cent to €68.75.

Renault advanced for a fourth day, rising 3.4 per cent to €49.51. The French carmaker had its recommendation lifted to “overweight” from “underweight” at Barclays Capital.

Fiat Industrial jumped 8.3 per cent to €10.66.

Voestalpine led basic-resources stocks higher, adding 4.2 per cent to €33.28, as chief financial officer Robert Ottel said the company issued a €500 million bond ahead of new financial regulations which the company expects will limit access to bank credits.

Xstrata and Kazakhmys gained 1.8 per cent to 1,417p and 2.7 per cent to 1,541p, respectively as metal prices increased.

BG climbed 3.8 per cent to 1,377.5p as the UK’s third-largest energy producer said it discovered light oil in Block BM-S-9 in the Santos Basin, offshore Brazil.

Randstad soared 4.4 per cent to €39.92.

Heritage Oil plummeted 28 per cent to 312.9p, a record drop, after discovering gas and condensate in a section of the Miran Field in Kurdistan rather than the previously anticipated oil.

Lafarge dropped 2.8 per cent to €46.18. – (Bloomberg)