European stocks rose, extending their highest level since June 2008, after the Bank of England raised its growth forecast for Europe's third-biggest economy.

Stocks climbed as BOE Governor Mervyn King said that an economic recovery in the U.K. is now "in sight". In the central bank's quarterly Inflation Report, which is King's last before he retires in July, officials predicted that growth will accelerate to 0.5 percent in the second quarter from 0.3 percent in the first three months of the year.

A report from Eurostat showed the combined economy of the euro area shrank more than economists had forecast. That extended the currency bloc's recession to a record sixth quarter. Gross domestic product fell 0.2 percent in the first quarter, the European Union's statistics office in Luxembourg said. GDP slid 0.6 percent in the final three months of 2012.

National benchmark indexes advanced in 16 of the 18 western-European markets. The U.K.'s FTSE 100 Index added 0.1 percent, while Germany's DAX Index rose 0.3 percent. France's CAC 40 Index gained 0.4 percent.

EasyJet jumped 8.3 percent to 1,224 pence after Europe's second-largest discount carrier said revenue per seat for the second half will probably climb 4 percent. The company also narrowed its first-half pretax loss to 61 million pounds ($93 million) from 112 million pounds a year earlier, as more business travelers booked its flights.

Ryanair Holdings Plc, the biggest low-cost carrier, advanced 3.7 percent to 6.37 euros in Dublin trading.

Commerzbank surged 12 percent to 7.79 euros on the first day of its 2.5 billion-euro capital increase. Germany's second-biggest lender has offered its investors 20 shares for every 21 they hold at 4.50 euros apiece. Bank of America Corp. upgraded the lender to buy, saying that the company has become too cheap.

ITV Plc slid 1.9 percent to 129.2 pence after the commercial broadcaster forecast that revenue from its network of television channels will fall 3 percent in its first half. Chief Executive Officer Adam Crozier said in a statement that the company was cautious about TV advertising in 2013.

U.S. stock futures fell as data showed manufacturing in the New York region and industrial production unexpectedly shrank in May and the euro-area economy contracted more than forecast.

Global Stocks:

Nikkei 15,096.03 +337.61 +2.29%

Hang Seng 23,044.24 +113.96 +0.50%

Shanghai Composite 2,224.8 +7.79 +0.35%

FTSE 6,687.35 +1.29 +0.02%

CAC 3,962.61 -3.45 -0.09%

DAX 8,325 -14.11 -0.17%

Crude oil $93.06 -1.22%

Gold $1410.80 -0.96%

European stocks advanced, extending their highest level since June 2008, as Bank of England Governor Mervyn King predicted that a recovery for the U.K. economy is within sight. U.S. index futures were little changed, while Asian shares rallied.

The Stoxx Europe 600 Index gained 0.3 percent to 306.57 at 10:44 a.m. in London. The equity benchmark has rallied 9.6 percent so far this year, bolstered by monetary stimulus from the world's central banks.

Reports on gross domestic product growth in Europe's two largest economies disappointed. France fell into its third recession since 2008, shrinking 0.2 percent, according to the national statistics office Insee. Germany narrowly avoided a contraction as it expanded less than economists had forecast. GDP rose 0.1 percent in the first quarter, the Federal Statistics Office in Wiesbaden said today.

Commerzbank surged 14 percent to 7.97 euros on the first day of its 2.5 billion-euro ($3.2 billion) capital increase. Germany's second-biggest lender is offering its investors 20 shares for every 21 they hold at 4.50 euros apiece. Bank of America Corp. upgraded the lender to buy, saying that the company has become too cheap.

ThyssenKrupp rose 3 percent to 15.56 euros after the steelmaker reported second-quarter adjusted earnings before interest and taxes of 241 million euros. That beat the 202.3 million-euro average analyst estimate. The company also posted a first-half net loss of 621 million euros after a writedown of its Americas unit.

EasyJet Plc (EZJ) gained 5.9 percent to 1,197 pence after Europe's second-largest discount carrier said it will deliver improved returns and profitability in the full year. Revenue per seat for the second half through Sept. 30 will probably climb 4 percent. The company also narrowed its first-half pretax loss to 61 million pounds ($93 million) from 112 million pounds a year earlier.

ITV slid 3 percent to 127.8 pence after Chief Executive Officer Adam Crozier said in a statement that the company was cautious about TV advertising in 2013. The commercial broadcaster forecast that revenue from its network of television channels will fall 3 percent in its first half.

FTSE 100 6,688.3 +2.24 +0.03%

CAC 40 3,973.49 +7.43 +0.19%

Asian stocks rose as Japan's Nikkei 225 Stock Average climbed above 15,000 for the first time since January 2008 after the yen touched a 4 1/2-year low against the dollar, boosting the earnings outlook for exporters.

Nikkei 225 15,096.03 +337.61 +2.29%

Hang Seng 23,039.76 +109.48 +0.48%

S&P/ASX 200 5,191.7 -29.29 -0.56%

Shanghai Composite 2,224.8 +7.79 +0.35%

Sony Corp. surged 10 percent as billionaire Danie Loeb pushed for the initial public offering of the Japanese electronics maker's entertainment business.

Toyota Motor Corp., the world's biggest carmaker, climbed 3.7 percent in Tokyo.

Li & Fung Ltd., a supplier of toys and clothes to retailers including Wal-Mart Stores Inc., jumped 9.9 percent in Hong Kong after UBS AG raised its rating on the stock.

Change % Change Last

Nikkei 225 14,758.42 -23.79 -0.16%

S&P/ASX 200 5,221 +10.66 +0.20%

Shanghai Composite 2,217.01 -24.91 -1.11%

FTSE 100 6,686.06 +54.30 +0.82%

CAC 40 3,966.06 +20.86 +0.53%

DAX 8,339.11 +59.82 +0.72%

DJIA 15,215.20 123.57 0.82%

S&P 500 1,650.12 16.35 1.00%

NASDAQ 3,462.61 23.82 0.69%