European Stocks Climb, Paring Weekly Slump; L’Oreal Rises

Europeans stocks advanced, paring their biggest weekly selloff since November, as the region's commodity producers rebounded from a 3 1/2-year low. U.S. index futures and Asian shares also climbed.

BHP Billiton Ltd. and Anglo American Plc contributed the most to a rally by raw-materials companies. L'Oreal SA (OR) gained 2.5 percent after reporting revenue that beat analysts' estimates. SAP AG retreated 2.7 percent after the world's largest maker of business-management software reported sales that trailed analysts' forecasts.

The Stoxx Europe 600 Index (SXXP) added 0.5 percent to 285.09 at 8:35 a.m. in London. The gauge has slipped 2.6 percent so far this week, its biggest drop in five months, as commodities fell amid worst-than-forecast economic data from China and the U.S.

"After the declines we have seen, it's to be expected that you will see a bit of a marginal bounce," Brenda Kelly, market strategist at IG told Mark Barton on Bloomberg Television. "The European markets have had a notably softer tone, which in a way is down to lower commodities prices. This suggests that investors don't necessarily believe the underlying fundamentals of the equity rally that we have seen."

Standard & Poor's 500 Index futures rose 0.5 percent today, while the MSCI Asia Pacific Index climbed 0.4 percent after China's State Information Center said the economy will probably grow at a faster pace in the second and third quarters.

Six companies on the the Stoxx 600 post earnings today, according to data compiled by Bloomberg. In the U.S., 13 S&P 500-listed stocks, including General Electric Co. and McDonald's Corp., release their results.

Mining Companies

BHP Billiton added 1.6 percent to 1,800.5 pence as the world's largest commodity producer dragged a gauge of mining companies from its lowest level since July 2009.

Anglo American gained 2.2 percent to 1,597 pence after reporting that iron ore, coal and copper output increased in the first quarter.

L'Oreal advanced 2.5 percent to 124.20 euros after the world's largest cosmetics maker reported a 5.1 percent increase in first-quarter revenue to 5.93 billion euros ($7.8 billion) as demand for luxury brands helped counter weakness in professional products. The average of six estimates compiled by Bloomberg had called for sales of 5.85 billion euros.

LVMH Moet Hennessy Louis Vuitton (MC) SA rose 0.7 percent to 121.65 euros after Goldman Sachs Group Inc. added the shares to its conviction buy list, saying their underperformance presented a "compelling opportunity." The company reported on April 15 the slowest growth in sales of fashion and leather products since 2009.

SAP, TeliaSonera

In Germany, SAP slid 2.7 percent to 58.01 euros after reporting a 3 percent increase in first-quarter sales of new software licenses, an indicator of future revenue, to 657 million euros. That missed the average analyst estimate of 726 million euros after the company failed to close contracts in the Asia-Pacific region.

TeliaSonera AB (TLSN) lost 1.8 percent to 42.64 kronor after Sweden's biggest phone company reported first-quarter net income of 4.11 billion kronor ($631 million), little changed from a year earlier. Sales declined in the company's Nordic markets because of increased competition. Analysts had predicted 4.32 billion kronor of profit, according to the average of 15 estimates compiled by Bloomberg. Sales fell 4.4 percent.