European stocks advanced

European stocks advanced, paring yesterday’s largest slide for the Stoxx Europe 600 Index in more than a week, as investors awaited the monthly U.S. jobs and unemployment report.

Draghi yesterday announced that the ECB has a plan to re- enter bond markets and said new purchases in the secondary market would only complement buying by the European Union’s rescue fund in the primary market, to which strict conditionality is attached.

In the U.S., a Labor Department report at 8:30 a.m. in Washington may show that the pace of hiring in July failed to reduce the jobless rate, which has held above 8 percent for more than three years.

Allianz rose 3.3 percent to 81.24 euros as second-quarter profit climbed more than analysts had predicted after earnings increased at its life and health business. Net income of 1.23 billion euros topped the average 1.15 billion-euro average estimate of 13 analysts surveyed by Bloomberg.

Axa climbed 1.2 percent to 9.82 euros as first-half operating profit, which excludes capital gains, one-off charges and asset-valuation swings, rose to 2.3 billion euros, helped by rising revenue from health and property-and-casualty insurance. That exceeded the 2.15 billion-euro average estimate.

Siemens climbed 4.3 percent to 71.25 euros, its biggest gain this month, after the company said it will repurchase equities and cancel 33 million shares held in treasury. Siemens said it will use the buybacks to reduce capital stock, to issue shares to employees and board members and to back convertible bonds and warrants.

FTSE 100 5,728.02 +65.72 +1.16%

CAC 40 3,295.03 +62.57 +1.94%

DAX 6,720.1 +114.01 +1.73%