European Stocks Rise on Energy Related Issues (Bloomberg) (04-01-2008)

Jan. 4 (Bloomberg) -- European stocks turned positive after two days of losses, with mining companies and chemical makers leading gains, as copper prices rose and Merrill Lynch & Co. recommended buying shares of Yara International ASA.

Anglo American Plc, the world's second-largest mining company, and Rio Tinto Group advanced. Yara International, the biggest fertilizer maker, climbed the most in two weeks.

The Dow Jones Stoxx 600 Index gained 0.3 percent to 360.12 at 8:20 a.m. in London. The Stoxx 50 also gained 0.3 percent, while the Euro Stoxx 50, a measure for the euro region, increased 0.1 percent.

Stocks had remained in negative territory in the first two trading days of this year on concern record oil prices will cause profit growth to ease. Today’s release of the U.S. employment report today will give investors evidence as to the pace of the slowdown in the world's largest economy.

U.S. Treasury notes fell for the first time in six days on concern record crude-oil prices will spur inflation. Crude oil traded above $99 a barrel after reaching a record $100.09 yesterday.

Anglo American, the world's second-largest mining company, gained 1 percent to 3,157 pence. Rio Tinto, the third-biggest, added 0.7 percent to 5,405 pence.

Copper, lead and nickel gained on the London Metal Exchange. Copper for delivery in three months advanced $130 to $7,100 a metric ton. Lead rose $15 to $2,685 a ton, and nickel climbed $500 to $29,450 a ton.

Yara rose 5 percent to 262.5 Norwegian kroner. Merrill upgraded the stock to ``buy'' from ``neutral.''

Automakers such as Renault SA lost 1.4 percent to 92.2 euros. Nissan Motor Co. lled Japanese automakers lower after Toyota Motor Corp. cut its forecast for U.S. sales.

Among banking stocks, EFG sank 3 percent to 43.05 Swiss francs after UBS analysts cut their recommendation to “sell” from “neutral” and lowered 2008 and 2009 earnings per share estimates by 10 percent and 15 percent, respectively.

Societe Gιnιrale SA added 1 percent to 98.67 euros after UBS raised its recommendation on France's second-biggest bank by market value to “buy” from “neutral,” citing the company's “sustainable earnings stream.”

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