05.08.2013 – EU STOCKS gain for sixth day

European stocks advanced for a sixth day, the longest winning streak this year, as services output recovered last month.

The Stoxx Europe 600 Index advanced 0.5%.

Euro-area services output rose to 49.8 from 48.3 in June, above an initial estimate of 49.6 on July 24.

A measure of U.K. services growth climbed more than forecast to the highest level in more than six years. 

The UK Markit/CIPS services PMI gained to 60.2 in July, while analysts predicted 57.2.

Lloyds jumped 4.4%. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60% to 70% of earnings as dividends by 2015, according to a report by the Financial Times, which cited unidentified people involved in the meetings.

CNP Assurances (CNP) jumped 3.5%. Exane BNP Paribas analyst Thomas Jacquet boosted his rating on France’s largest life insurer to outperform from neutral, while raising the share-price estimate by 31%.

Mediaset rose 3.9%. Deutsche Bank AG analyst Laurie Davison upgraded the broadcaster controlled by Silvio Berlusconi to buy from hold, saying pullbacks in the share price offer attractive entry points.

Drax added 3.3% after Goldman Sachs Group Inc. lifted its rating on the operator of U.K.’s largest coal-fired power station to conviction buy from neutral.

Sky Deutschland AG rallied 3% after Citigroup Inc. raised its price target on the German pay-TV provider by 36 percent to 7 euros.

PostNL (PNL) sank 10%, the biggest decline since January. The Amsterdam-based company said sales in the second-quarter were 1.03 billion euros ($1.37 billion), falling short of the 1.04 billion euros predicted by analysts on average.

HSBC slid 3.9%, the largest drop in six weeks. First-half pretax profit rose to $14.07 billion from $12.74 billion a year earlier, the London-based bank said in a statement today, just below the $14.15 billion estimate of analysts.

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