Stocks: Thursday’s review

European stocks climbed for a fifth day as Nestle SA (NESN) posted sales growth that beat estimates and a report showed China’s inflation cooled, increasing speculation that policy makers will do more to stimulate the economy.

Nestle, which accounts for more than 3 % of the Stoxx Europe 600 Index (SXXP), advanced 2.4 % as higher prices helped to increase revenue. Novo Nordisk (NOVOB) A/S gained 1.3 % after the company raised its full-year sales and profit forecasts. Deutsche Telekom AG (DTE) slid 2 % after saying it has lost more customers in the U.S. than analysts had forecast.

The Stoxx 600 increased 0.3 % to 270.01, its highest level since March 19.

National benchmark indexes gained in 14 of the 18 western- European markets.

FTSE 100 5,851.51 +5.59 +0.10% CAC 40 3,456.71 +18.45 +0.54% DAX 6,964.99 -1.16 -0.02%

Nestle climbed 2.4 % to 61.05 Swiss francs after the world’s largest food company said sales increased 6.6 %, excluding acquisitions, divestments and currency shifts in the first half of the year.

Of the 261 companies listed on the Stoxx 600 that have reported half-yearly profit this earnings season, 155 have exceeded analysts’ projections, while 101 have missed them.

Novo Nordisk advanced 1.3 % to 938 kroner after the world’s largest insulin maker said 2012 revenue will jump 9 % to 12 % in local currencies, compared with a previous forecast for an increase of 8 % to 11 %. Operating profit in local currencies will climb 15 %, more than the previous prediction of 10 %.

Standard Chartered Plc (STAN) added 3.6 % to 1,363 pence as Chief Executive Officer Peter Sands said yesterday that a New York regulator had no grounds for revoking the lender’s license. The Department of Financial Services said that Standard Chartered had processed $250 billion of transactions with Iranian banks that were subject to sanctions.

Bankia SA (BKIA), the lender Spain nationalized in May, surged 19 % to 1.51 euros for the largest gain on the Stoxx 600. The shares have more than doubled in price since European Central Bank President Mario Draghi pledged on July 26 to do whatever it takes to preserve the euro.

Nokia Oyj (NOK1V), the smartphone maker that started using Microsoft Corp.’s operating system to revive its business, jumped 6.5 % to 2.28 euros after agreeing to sell its Qt app-tools unit to Digia Oyj.

Deutsche Telekom fell 2 % to 9.21 euros after Germany’s largest phone company said T-Mobile USA lost 557,000 contract customers in the second quarter, more than the 346,200 predicted by analysts.

Cable & Wireless Communications Plc (CWC) slid 2.2 % to 31.9 pence and BT Group Plc (BT/A) slipped 2.4 % to 216.3 pence.

Commerzbank AG (CBK) declined 4.2 % to 1.23 euros after projecting that net income in the second half of 2012 will fall below profit in the first half of the year. Germany’s second- largest lender also reported second-quarter net income that rose to 275 million euros from 24 million euros a year earlier. That topped the average analyst estimate of 270 million euros in a Bloomberg survey.