Eurostoxx 50: 2,802.84 (+8.58) Frankfurt DAX: 7,142.34 (+20.82) Paris CAC: 3,916.88 (+9.90):EUROPEAN STOCKS rose yesterday, with the benchmark Stoxx Europe 600 Index rebounding from a one-month low, as commodities rallied and a report showed that US new-home sales increased more than forecast last month.

BHP Billiton, the world’s biggest mining company, and Rio Tinto, the third largest, both gained at least 2.5 per cent as metal prices rose. Travis Perkins climbed 4 per cent after Jefferies Group recommended buying its shares.

National benchmark indexes gained in 16 of the 18 western European markets. France’s CAC 40 Index rose 0.5 per cent, Germany’s DAX and the UK’s FTSE 100 increased 0.9 per cent.

Commodities rebounded from the biggest drop in almost two weeks after Goldman Sachs Group said it was turning “more bullish” on raw materials. Anglo American increased 2.4 per cent and Kazakhmys, a Kazakh copper miner listed in London, gained 3.1 per cent.

Arkema surged 3.5 per cent to €74.31. The stock was raised to “overweight” from “neutral” at HSBC, which said its valuation was the cheapest among European chemical companies.

Gas Natural SDG added 1.7 per cent to €13.14. The company plans to increase its capital and give Algeria’s national oil company Sonatrach a 10 per cent stake as part of a compensation deal, Cinco Dias reported.

Gas Natural would make an additional payment in cash, settling the remaining money it owed Sonatrach in future price accords for gas supplies, the newspaper said. The Spanish company said it had yet to reach an agreement with Sonatrach.

Greek stocks advanced after the government announced a stepped- up plan to sell holdings in companies including Hellenic Telecommunications Organisation. Hellenic Telecom soared 4.2 per cent to €6.76. Hellenic Postbank surged 5.7 per cent to €2.97 after the government said it may sell its 34 per cent stake in the lender this year.

Renewable Energy slumped 14 per cent to 13.13 kroner, its largest drop since February 2010, after the company forecast that it would make a smaller second-quarter operating profit than it did in the first quarter.

Renewable Energy also said it would cut its output of wafers, cells and modules in response to market conditions. – (Bloomberg)