European stocks advanced to the highest level since June 2008 as a report showed U.S. employment in April picked up more than forecast and the jobless rate unexpectedly dropped to a four-year low.

The Stoxx Europe 600 Index added 1 percent to 300.87 at 4:30 p.m. in London, extending its weekly rise to 1.7 percent. The gauge yesterday climbed to a seven-week high as the European Central Bank lowered its benchmark interest rate and companies posted better-than-expected earnings. The equity measure completed an 11th month of gains in April, its longest winning streak since 1997.

In the U.S., a Labor Department report showed that payrolls expanded by 165,000 workers last month following a revised 138,000 increase in March that was larger than first estimated. Economists on average had forecast a gain of 140,000 in April. Revisions to the prior two months' reports added a total of 114,000 jobs to the employment count in February and March. The jobless rate fell to 7.5 percent from 7.6 percent a month earlier. That's the lowest since December 2008. Economists had forecast that the rate will remain unchanged.

The European Commission said the euro-area economy will shrink more in 2013 than previously expected. Gross domestic product in the 17-nation region will decline 0.4 percent, compared with a February prediction of a 0.3 percent drop. This follows a 0.6 percent contraction in 2012 and shows the region headed for its first ever back-to-back years of falling output.

National benchmark indexes advanced in all western European markets. Greek markets were closed for Orthodox Easter.

FTSE 100 6,521.46 +60.75 +0.94% CAC 40 3,912.95 +54.19 +1.40% DAX 8,122.29 +160.58 +2.02%

Adidas advanced 7.4 percent to 85.40 euros. First-quarter net income of 308 million euros ($404 million) beat the average 298.5 million-euro analyst projection. The company also said its gross margin widened to a record.

Vallourec (VK) soared 11 percent to 40.08 euros, the most since November 2011. First-quarter earnings before interest, taxes, depreciation and amortization totalled 191 million euros, exceeding the average 178 million-euro analyst estimate.

CGGVeritas (CGG) surged 12 percent to 18.68 euros as the largest seismic surveyor of oilfields posted first-quarter net income of $79 million, following a loss of $3 million a year earlier. The Paris-based company said it expects a 25 percent-increase in full-year sales and positive cash flow.

Sky Deutschland AG, the German pay-TV provider controlled by Rupert Murdoch's News Corp., climbed 7.4 percent to 4.84 euros after posting an unexpected operating profit in the first quarter. Analysts on average had predicted a loss.

RBS (RBS) dropped 6.1 percent to 288.5 pence, after Britain's biggest state-owned lender said operating profit fell to 829 million pounds ($1.3 billion) in the first quarter. That missed the 1.2 billion-pound estimate of analysts.

Asian stocks climbed as profit at Australian bank Macquarie Group Ltd. rose, U.S. jobless claims fell to the lowest in five years and the European Central Bank cut interest rates to a record low.

Nikkei 225 Closed

Hang Seng 22,721.9 +53.60 +0.24%

S&P/ASX 200 5,129.5 -0.47 -0.01%

Shanghai Composite 2,205.27 +31.15 +1.43%

Macquarie surged 11 percent, its biggest gain in four years, as profit at the Australia's largest investment bank topped estimates.

New World Development Co., the Hong Kong builder controlled by billionaire Cheng Yu-tung, gained 3.9 percent after receiving permission from the city's stock exchange to proceed with the listing of its local hotels.

Fletcher Building Ltd., a manufacturer of construction products, sank 6.5 percent in Wellington as Goldman Sachs Group Inc. cut its outlook for building-material shares.

Change % Change Last

Nikkei 225 13,694.04 -105.31 -0.76%

Hang Seng 22,656.83 -80.18 -0.35%

S&P/ASX 200 5,129.97 -36.22 -0.70%

Shanghai Composite 2,174.12 -3.79 -0.17%

FTSE 100 6,460.71 +9.42 +0.15%

CAC 40 3,858.76 +2.01 +0.05%

DAX 7,961.71 +48.00 +0.61%

Dow +125.33 14,826.28 +0.85%

Nasdaq +41.27 3,340.40 +1.25%

S&P +14.62 1,597.32 +0.92%