Eurostoxx 50:2,955.84 (–7.08) Frankfurt DAX:7,175.33 (–4.48) Paris CAC:4,042.92 (–11.84)

MOST EUROPEAN stocks rose yesterday, extending a three-week high for the Stoxx Europe 600 Index, as chemical makers advanced after Solvay agreed to buy Rhodia for €3.4 billion.

The Stoxx 600 rose 0.1 per cent to 280.26 at the close in London as three stocks gained for every two that declined.

The gauge has advanced 6.9 per cent from this year’s low on March 16th amid speculation the economic recovery will withstand Japan’s worst earthquake on record and popular revolts in the Middle East and north Africa.

“The expectation of a range-bound market over the next three to six months has become very fashionable,” Mislav Matejka, head of European equity strategy at JPMorgan Chase, wrote in a report yesterday.

“In contrast, we believe the market could surprise by its resiliency, we remain constructive on equities and continue to advise buying any dips,” he said.

Rhodia soared 48 per cent to €31.21.

Solvay agreed to buy the speciality chemicals producer for €31.60 a share as the Belgian maker of soda ash seeks to expand operations in emerging markets.

Solvay gained 2.3 per cent to €85.79. A gauge of chemical companies in the Stoxx 600 climbed to the highest level since at least 1987.

Croda, a supplier of ingredients for Nivea sunblock, gained 1.4 per cent to 1,718p.

Germany-based Lanxess rose 3.7 per cent to €56.73 and France’s Arkema gained 2.3 per cent to €66.66.

Nokian Renkaat rallied 7.9 per cent to €33.24 after the tyre maker said earnings “clearly” increased.

Rio Tinto climbed 1.3 per cent to 4,478p after analysts at Nomura Holdings said the third-largest mining company may double a share buyback plan to $10 billion after purchasing $800 million of stock, or 16 per cent of the programme announced in February.

Aggreko surged 5.3 per cent to 1,678p after winning a contract to provide temporary power plants supplying 200 megawatts of electricity in Japan following the March 11th earthquake.

Monte Paschi lost 1.9 per cent to €87.5 cents after La Stampa reported Italy’s third-biggest bank is considering raising €2 billion in new capital. – (Bloomberg)