European stocks gained for the first time in five days as a rally by automakers outweighed a decline in retailer shares and the Group of 20 nations pledged to safeguard growth while cutting debt.
PSA Peugeot Citroen climbed 1.5 percent as La Lettre de L'Expansion reported that France's biggest carmaker has lifted its sales target for the DS3 model. Premier Oil Plc surged 7.1 percent after the explorer said a North Sea well encountered oil-bearing sandstones. Hennes & Mauritz AB fell 2.8 percent after Chief Executive Officer Karl-Johan Persson told La Tribune that Europe's second-largest clothing retailer isn't for sale.
The Stoxx Europe 600 Index rose 0.4 percent to 249.24 at 3:16 p.m. in London, having swung between gains and losses at least six times. The gauge fell 2.8 percent last week as disappointing U.S. housing data and a surge in the cost to protect from a Greek default reignited concern about the global recovery. The index is trading at 15 times reported earnings, near the lowest level since 2008, according to Bloomberg data.
"The market has declined a lot and valuations reflect a lot of the uncertainty," said Charles Dautresme, a strategist at Axa Investment Management in Paris, which oversees about $626 billion. "In the long term, we'll come out winning. We shouldn't be too negative."
National benchmark indexes rose in 10 of the 18 western European markets. France's CAC 40 advanced 0.3 percent and Germany's DAX increased 0.4 percent. The U.K.'s FTSE 100 slipped 0.2 percent.
Banking Oversight
Global efforts to tighten banking oversight have gained momentum, U.S. President Barack Obama said following the G-20 meeting this weekend. Group leaders agreed to pursue higher capital requirements for banks once their economic recoveries take root and endorsed targets to cut deficits at least by half by 2013 and stabilize their debt-to-output ratios by 2016.
Central banks and governments should consider withdrawing extraordinary measures to avoid skewing investment decisions and delaying companies' recording of losses, the Bank for International Settlements said.
"The time has come to ask when and how these powerful measures can be phased out," the Basel, Switzerland-based BIS said in its annual report published today. "The cumulating side effects themselves pose a danger that, at the very least, implies exiting sooner than may be comfortable for many."
Peugeot, Porsche
Peugeot rose 1.5 percent to 22.02 euros, leading a gauge of auto shares to the biggest gain among 19 industry groups in the Stoxx 600. The carmaker has lifted its 2010 sales target for the DS3 model to 70,000 from 45,000, La Lettre de L'Expansion reported, without citing anyone.
Preferred shares of Porsche SE, the maker of the 911 sports car, climbed 1.9 percent to 36.72 euros as the stock was upgraded to "buy" from "sell" at Bankhaus Metzler.
Premier Oil surged 7.1 percent to 1,266 pence, the most in more than a year. The U.K. explorer said the Catcher East sidetrack well in the U.K. Central North Sea encountered "excellent quality" oil-bearing sandstones.
H&M dropped 2.8 percent to 214.3 kronor. The Persson family, which holds 37 percent of the shares and 70 percent of the voting rights, considers H&M a "long-term investment," Persson, the grandchild of the Swedish founder, told La Tribune.
Standard Chartered Plc fell 3.2 percent to 1,687 pence as the British bank that earns most of its profit in Asia said the European sovereign-debt crisis caused a "softening" of first- half revenue.
Infineon, Vallourec
Infineon Technologies AG advanced 2.3 percent to 5.07 euros. German Chancellor Angela Merkel has agreed to help Russia's AFK Sistema negotiate with Infineon about purchasing a stake in the German semiconductor maker, Financial Times Deutschland reported. Infineon and Sistema are not in talks on a stake purchase, spokesmen at the two companies said.
Vallourec SA, which produces steel pipes for the oil and gas industry, rose 2.4 percent to 147.95 euros. The company has seen a rebound in volumes after a low point reached in the first quarter, Chairman Philippe Crouzet told La Tribune in an interview. Vallourec is benefiting from a recovery in the U.S., Brazil and Asia, while the economy in Europe is "less good," Crouzet told the newspaper.
Banco Popolare SC jumped 2.2 percent to 4.67 euros. The stock was rated "buy" at Societe Generale SA, which initiated coverage of Italy's fourth-biggest bank and set a price estimate of 5.90 euros.
"Banco Popolare is a restructuring story, with significant upside potential," Paris-based analyst Carlo Tommaselli wrote in a note today.
Bwin Interactive Entertainment AG climbed 2.3 percent to 36.71 euros. The Austrian online betting company denied a report that merger talks with PartyGaming Plc have collapsed.
"Bwin is currently holding talks with several potential partners in the online gaming sector on possible co-operation and/or acquisitions," the company said.