BEIJING-- Eueopean stocks posted their first back-to-back weekly gains last week since May as better earnings and lower oil prices fueled a rally in car makers and banks climbed on speculation credit-market losses will abate.
Volkswagen, Fiat and Peugeot Citroen reported profit exceeding projections and crude fell for a third consecutive week. Credit Suisse Group, the second-biggest Swiss bank, rallied the most since March 2003 on earnings that were almost double what analysts expected.
Europe's Dow Jones Stoxx 600 Index increased 0.4 percent last week to 281.76, extending its rebound from a three-year low on July 15 to 5.7 percent.
The measure has tumbled 23 percent this year after 467 billion U.S. dollars of credit losses and asset writedowns at banks prolonged the global economy's slump and inflation eroded profits.
The Stoxx 600's rally from its July low was led by bank and consumer shares as earnings from Credit Suisse to Citigroup topped estimates and oil tumbled more than 15 percent from its all-time high on July 11.
Second-quarter profits at financial firms in the Stoxx 600 that reported results so far exceeded projections by 15 percent, while consumer-goods makers beat expectations by 7.8 percent.
National benchmark indexes gained in six of the 18 western European markets.
The Swiss Market Index added 2.8 percent, and France's CAC 40 increased 1.8 percent. The UK's FTSE 100 slipped 0.4 percent, while Germany's DAX climbed 0.9 percent.
The Stoxx 50 rose 0.7 percent and the Euro Stoxx 50, a measure for the euro region, advanced 0.9 percent.
Indexes recouped earlier losses last Friday after better-than-forecast reports on durable goods orders, consumer confidence and new-home sales in the United States.
Crude oil fell to a seven-week low on signs that global fuel consumption will drop, a U.S. government report showing that fuel stockpiles increased and expectations OPEC will boost output.
Volkswagen climbed 9 percent. Europe's largest car maker reported that second-quarter profit gained 35 percent. Fiat rallied 13 percent after Italy's biggest car maker said second-quarter profit rose 1.9 percent.
Peugeot added 6.8 percent after Europe's second-largest car maker said first-half profit climbed 49 percent on cost cuts and buoyant demand.
Credit Suisse jumped 11 percent. The company reported the smallest writedowns on Wall Street as the securities unit returned to profit.
Royal Bank of Scotland Group advanced 8.8 percent and Barclays added 11 percent.
The US Senate cleared the way for a final vote on Saturday on legislation designed to stem home foreclosures and bolster confidence in Fannie Mae and Freddie Mac, the biggest US mortgage-finance companies.
The bill would allow the Treasury to inject capital into Fannie Mae and Freddie Mac through government loans and investments.
It would also install a tougher regulator for the lenders and allow them to buy bigger mortgages.
The Stoxx 600's gain was limited by declines in companies in the telecommunication and insurance sectors.
Volkswagen, Fiat and Peugeot Citroen reported profit exceeding projections and crude fell for a third consecutive week. Credit Suisse Group, the second-biggest Swiss bank, rallied the most since March 2003 on earnings that were almost double what analysts expected.
Europe's Dow Jones Stoxx 600 Index increased 0.4 percent last week to 281.76, extending its rebound from a three-year low on July 15 to 5.7 percent.
The measure has tumbled 23 percent this year after 467 billion U.S. dollars of credit losses and asset writedowns at banks prolonged the global economy's slump and inflation eroded profits.
The Stoxx 600's rally from its July low was led by bank and consumer shares as earnings from Credit Suisse to Citigroup topped estimates and oil tumbled more than 15 percent from its all-time high on July 11.
Second-quarter profits at financial firms in the Stoxx 600 that reported results so far exceeded projections by 15 percent, while consumer-goods makers beat expectations by 7.8 percent.
National benchmark indexes gained in six of the 18 western European markets.
The Swiss Market Index added 2.8 percent, and France's CAC 40 increased 1.8 percent. The UK's FTSE 100 slipped 0.4 percent, while Germany's DAX climbed 0.9 percent.
The Stoxx 50 rose 0.7 percent and the Euro Stoxx 50, a measure for the euro region, advanced 0.9 percent.
Indexes recouped earlier losses last Friday after better-than-forecast reports on durable goods orders, consumer confidence and new-home sales in the United States.
Crude oil fell to a seven-week low on signs that global fuel consumption will drop, a U.S. government report showing that fuel stockpiles increased and expectations OPEC will boost output.
Volkswagen climbed 9 percent. Europe's largest car maker reported that second-quarter profit gained 35 percent. Fiat rallied 13 percent after Italy's biggest car maker said second-quarter profit rose 1.9 percent.
Peugeot added 6.8 percent after Europe's second-largest car maker said first-half profit climbed 49 percent on cost cuts and buoyant demand.
Credit Suisse jumped 11 percent. The company reported the smallest writedowns on Wall Street as the securities unit returned to profit.
Royal Bank of Scotland Group advanced 8.8 percent and Barclays added 11 percent.
The US Senate cleared the way for a final vote on Saturday on legislation designed to stem home foreclosures and bolster confidence in Fannie Mae and Freddie Mac, the biggest US mortgage-finance companies.
The bill would allow the Treasury to inject capital into Fannie Mae and Freddie Mac through government loans and investments.
It would also install a tougher regulator for the lenders and allow them to buy bigger mortgages.
The Stoxx 600's gain was limited by declines in companies in the telecommunication and insurance sectors.
