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European stocks advanced to their highest level since May as mining companies rallied after a report showed Chinese industrial production increased at a faster-than-expected pace.
In China, a report from the National Bureau of Statistics showed that industrial output rose 9.7 percent in July from a year earlier, more than the 8.9 percent median forecast. The world’s second-largest economy grew at an annualized pace of 7.5 percent in the three months through June, the fifth consecutive quarter that gross domestic product has grown by less than 8 percent.
National benchmark indexes advanced in all 18 western-European markets today. France’s CAC 40 rose 0.3 percent and Germany’s DAX gained 0.2 percent. The U.K.’s FTSE 100 increased 0.8 percent.
Fresnillo Plc and Randgold Resources Ltd., which both mine precious metals, rose 8.2 percent to 1,035 pence and 6.8 percent to 4,722 pence, respectively. Lonmin Plc jumped 7.7 percent to 350.5 pence. The Stoxx 600 Basic Resource Index added 4.6 percent, the best performance of the 19 industry groups in the European equity benchmark.
KPN surged 16 percent to 2.32 euros as America Movil offered 2.40 euros a share for the company. The price -- a 20 percent premium to KPN’s close yesterday -- would value the stake that America Movil doesn’t already own at 7.2 billion euros ($9.6 billion). The Mexican mobile-phone operator has a 29.8 percent holding in KPN. An agreement between the two companies to limit America Movil’s stake to 30 percent expired after KPN agreed last month to sell its German business E-Plus to Telefonica SA.
Telekom Austria AG, which is also partly owned by America Movil, soared 8.7 percent to 5.73 euros.
Stockmann Oyj rallied 6 percent to 12.01 euros as second-quarter net income of 19.5 million euros exceeded the average analyst projection of 15.4 million euros. The owner of department stores in Finland and Russia also reiterated its guidance for the year.
Rheinmetall AG advanced 4.5 percent to 37.54 euros as the German maker of armored vehicles said its defense business won 66 percent of its orders from non-European countries in the first half of 2013. The unit obtained 46 percent of orders from outside Europe in the year-earlier period.
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