European stocks rose for a sixth day, the longest winning streak this year, as services output shrank at a slower pace than initially forecast, outweighing worse-than-estimated earnings from HSBC Holdings Plc.

Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction.

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

The Institute for Supply Management’s index of U.S. non-manufacturing businesses rose to 56 in July from the prior month’s 52.2, a report from the Tempe, Arizona-based group showed today. The median forecast in a survey of economists called for a gain to 53.1.

National benchmark indexes increased in 11 of the 17 western European markets open today. France’s CAC 40 climbed 0.1 percent, while Germany’s DAX slid 0.1 percent and the U.K.’s FTSE 100 dropped 0.4 percent. The Icelandic exchange was closed for a holiday.

Lloyds jumped 2.7 percent to 75.69 pence, the highest price since October 2010. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60 percent to 70 percent of earnings as dividends by 2015, according to a report by the Financial Times, which cited unidentified people involved in the meetings.

Mediaset rose 4 percent to 3.43 euros. 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 2.9 percent to 672.5 pence, the highest since October 2008. Goldman Sachs Group Inc. analyst Andrew Mead lifted his rating on the U.K. utility to conviction buy from neutral, citing the company’s transformation from a coal-fired power plant to a mostly biomass-fueled facility.

HSBC slid 4.4 percent to 721.7 pence, the largest drop since November 2011. First-half net income rose 10 percent to $10.28 billion after U.S. loan impairments fell, the London-based lender said. That was below the $10.57 billion estimate of analysts.

U.S. stock-index futures fell slightly as investors awaited a report that may show American service industries grew at a faster pace in July.

Global Stocks:

Nikkei  14,258.04 -208.12 -1.44%

Hang Seng 22,222.01 +31.04 +0.14%

Shanghai Composite 2,050.48 +21.06 +1.04%

FTSE  6,619.45 -28.42 -0.43%

CAC  4,051.76 +6.11 +0.15%

DAX 8,391.98 -14.96 -0.18%

Crude oil $106.08 -0.80%

Gold $1304.70 -0.44%

European stocks advanced for a sixth day, the longest winning streak this year, as services output shrank at a slower pace than initially estimated last month. U.S. index futures were little changed, while Asian shares fell.

The Stoxx Europe 600 Index advanced 0.5 percent to 305.62 at 10:24 a.m. in London, the highest since May 29. The benchmark gauge rose every day last week, adding 1.8 percent in the period, as European Central Bank President Mario Draghi said interest rates in the euro zone will remain low for an extended period. The measure has rallied 9.3 percent in 2013.

The Stoxx 600 is trading at 13.9 times estimates earnings, the most expensive since December 2009, according to data compiled by Bloomberg. The volume of share changing hands in the index was 29 percent less than the 30-day average today,.

Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction. A measure of U.K. services growth climbed more than forecast to the highest level in more than six years.

A report at 10 a.m. New York time may show the Institute for Supply Management’s index of U.S. non-manufacturing businesses rose to 53.1 in July from the prior month’s 52.2, according to survey of economists. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance.

Lloyds jumped 4.4 percent to 77 pence, the highest price since September 2010. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60 percent to 70 percent 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 percent to 13.55 euros. 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 percent.

Mediaset rose 3.9 percent to 3.43 euros. 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 percent to 675 pence 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.

FTSE 100 6,661.1 +13.23 +0.20%

CAC 40 4,058.48 +12.83 +0.32%

DAX 8,422.93 +15.99 +0.19%

Asian stocks fell, with the benchmark regional index on course for its first loss in three days, as the yen’s gain weighed on Japanese exporters and U.S. jobs data missed estimates.

Nikkei 225 14,258.04 -208.12 -1.44%

Hang Seng 22,224.82 +33.85 +0.15%

S&P/ASX 200 5,111.25 -5.51 -0.11%

Shanghai Composite 2,050.48 +21.06 +1.04%

Mazda Motor Corp., an automaker that gets 30 percent of its sales in North America, dropped 4.1 percent in Tokyo.

Fonterra Shareholders Fund tumbled 3.7 percent in Wellington after China and Russia halted imports of milk powder from Fonterra Cooperative Group Ltd., the world’s largest dairy exporter.

Tianneng Power International Ltd., a maker of storage batteries, tumbled as much as 19 percent before it was was suspended from trading in Hong Kong.