European stocks advanced for a third day

European stocks advanced for a third day as companies from ARM Holdings Plc to Cie. Financiere Richemont SA reported better-than-estimated results. Asian shares declined and U.S. index futures fluctuated.

A Chinese purchasing managers' index for April released by HSBC Holdings Plc and Markit Economics today had a preliminary reading of 50.5, compared with a final 51.6 in March. That was below the median 51.5 estimate in a survey. A reading above 50 indicates expansion.

Euro-area services and manufacturing output contracted for a 15th month in April, with a composite index based on a survey of purchasing managers holding at 46.5, according to Markit.

ARM surged 7.5 percent to 934 pence, the biggest jump since Feb. 5. Revenue in the quarter ending in March rose 29 percent to 170.3 million pounds ($260 million), the Cambridge, England- based company said. Analysts had predicted 160 million pounds, according to the average of a survey.

Richemont rallied 5.7 percent to 72 Swiss francs, the biggest gain since Jan. 9. The Swiss company said full-year net income climbed about 30 percent as the dollar's strength against the euro boosted sales growth. Analysts had expected a 25 percent gain in profit, according to the average of 17 estimates.

STMicroelectronics NV, a maker of semiconductors, advanced 6.1 percent to 5.96 euros even after reporting a first-quarter net loss. Chief Executive Officer Carlo Bozotti told analysts on a conference call he expects "significant growth" in the second half of 2013, driven by new products and improved demand.

FTSE 100 6,328.19 +47.57 +0.76%

CAC 40 3,708.19 +56.06 +1.53%

DAX 7,516.61 +38.50 +0.51%