European stocks climbed from a six-month low as the People's Bank of China allayed concern over a cash crunch, and as U.S. data on durable goods, new-home sales and confidence increased more than economists had projected.

China's central bank said it will keep money-market rates at a "reasonable" level and seasonal forces that have driven them up will fade.

The People's Bank of China has provided liquidity to some financial institutions to stabilize money market rates and will use short-term liquidity operation and standing lending facility tools to ensure steady markets, according to a statement posted to its website today.

Orders for U.S. durable goods rose more than forecast in May. Bookings for goods meant to last at least three years climbed 3.6 percent, after increasing a revised 3.6 percent the prior month, the Commerce Department reported today in Washington. The median forecast of 81 economists called for a 3 percent increase.

Sales of new U.S. homes also climbed more than estimated in May, to the highest level in almost five years. Purchases rose 2.1 percent to an annualized pace of 476,000 homes, exceeding all estimates in a survey and the most since July 2008, the Commerce Department said today in Washington.

The Conference Board's index of U.S. consumer confidence increased to 81.4 in June from 74.3 a month earlier, data from the New York-based private research group showed today. The median forecast of 77 economists called for a reading of 75.1.

European Central Bank President Mario Draghi said the euro-area economy still requires a loose monetary policy from the central bank.

National benchmark indexes rose in all of the 18 western European markets except Italy. The U.K.'s FTSE 100 added 1.2 percent, while France's CAC 40 advanced 1.5 percent. Germany's DAX increased 1.6 percent.

Peugeot rallied 4.9 percent to 6.11 euros, its biggest gain in more than a month. Europe's second-largest carmaker said it has received more than 26,000 orders in Europe for the 2008-model crossover. Peugeot is betting that the new 208 compact city car and the 2008, a derivative of that vehicle, will help it keep market share in Europe.

Vinci rose 3.9 percent to 37.60 euros. Berenberg initiated coverage of Europe's largest builder with a buy rating, saying that the company's size, balance sheet and technical expertise give it a competitive advantage over its European peers.

Icade SA advanced 3.1 percent to 60.19 euros. UBS AG raised its recommendation on the company to buy from neutral, with analysts led by Kristian Bandy saying the shares look cheap before a court ruling this week on the office landlord's takeover of Silic SA.

U.S. Stocks futeres rose thanks to more good news about the housing market in the U.S. and an ease in concerns about China's credit problems.

Global Stocks:

Nikkei 12,969.34 -93.44 -0.72%

Hang Seng 19,855.72 +41.74 +0.21%

Shanghai Composite 1,959.51 -3.73 -0.19%

FTSE 6,094.02 +64.92 +1.08%

CAC 3,644.93 +49.30 +1.37%

DAX 7,808.86 +116.41 +1.51%

Crude oil $95.93 +0.79%

Gold $1281.40 +0.34%

Upgrades:

Downgrades:

Other:

Boeing (BA) was reiterated at Buy at Argus; target raised from $102 to $115

Apple (AAPL) was reiterated at Outperform at Oppenheimer; target lowered from $480 to $460

European stocks climbed from a six-month low as the People's Bank of China allayed concern over a cash crunch and investors awaited reports that may show U.S. durable-goods orders and sales of new homes increased. U.S. index futures also advanced, while Asian shares slid.

The Stoxx Europe 600 Index increased 1.2 percent to 278.87 at 10:14 a.m. in London. The benchmark gauge entered a correction yesterday, having slumped more than 10 percent since May 22, when Federal Reserve Chairman Ben S. Bernanke commented on the possibility of paring bond purchases.

The Stoxx 600 is heading for a loss in June of 7.3 percent, its biggest monthly drop since August 2011.

China's stocks fell after posting the biggest swings in 22 months as the Shanghai Composite Index reached a four-year low and investors speculated the government will take steps to bolster financial markets. Liquidity risks in China's financial markets are controllable and seasonal forces affecting interest rates will fade, Ling Tao, deputy director of the Shanghai branch of the People's Bank of China, said at a briefing in Shanghai after the market close. The central bank will closely monitor the money-market rate and keep it at reasonable levels, he said.

U.S. durable-goods orders grew 3 percent in May after rising a revised 3.5 percent the prior month, economists projected before a report from the Commerce Department at 8:30 a.m. in Washington. Separate data due at 10 a.m. may show sales of new homes rose to a 460,000 annualized pace last month, the highest since July 2008, according to the survey median.

Peugeot rallied 5.1 percent to 6.12 euros. Europe's second-largest carmaker said it has received more than 26,000 orders in Europe for the 2008-model crossover. Peugeot is betting that the new 208 compact city car and the 2008, a derivative of that vehicle, will help it keep market share in Europe.

Vinci rose 3.9 percent to 37.59 euros. Berenberg initiated coverage of Europe's largest builder with a buy rating, saying that the company's size, balance sheet and technical expertise give it a competitive advantage over its European peers.

Icade SA advanced 2.7 percent to 59.96 euros. UBS raised its recommendation on the company to buy from neutral, with analysts led by Kristian Bandy saying the shares look cheap before a court ruling this week on the office landlord's takeover of Silic SA.

FTSE 100 6,083.54 +54.44 +0.90%

CAC 40 3,641.34 +45.71 +1.27%

DAX 7,806.44 +113.99 +1.48%

Asian stocks fell as China's Shanghai Composite Index (SHCOMP) slumped more than 20 percent from a February high, sinking deeper into a bear market, amid concern a cash crunch will curb growth in the world's second-largest economy.

Nikkei 225 12,969.34 -93.44 -0.72%

Hang Seng 19,849.28 +35.30 +0.18%

S&P/ASX 200 4,656 -13.14 -0.28%

Shanghai Composite 1,960.23 -3.00 -0.15%

Jiangxi Copper Co., China's biggest producer of the metal, sank 2.8 percent in Hong Kong.

Newcrest Mining Ltd. fell 2.4 percent after Australia's No. 1 gold producer cut jobs at its Lihir mine in Papua New Guinea.

Guangzhou Shipyard International Co., a unit of China's largest shipbuilder, plunged 17 percent after announcing plans to sell shares and buy a shipyard.

Nikkei 225 13,062.78 -167,35 -1,26%

Hang Seng 19,778.02 -485,29 -2,39%

S & P / ASX 200 4,669.1 -69.70 -1.47%

Shanghai Composite 1,963.24 -109,86 -5,30%

FTSE 100 6,029.1 -87.07 -1.42%

CAC 40 3,595.63 -62.41 -1.71%

DAX 7,692.45 -96.79 -1.24%

DJIA 14,659.60 -139.84 -0.94%

S&P 500 1,573.75 -18.68 -1.17%

NASDAQ 3,320.76 -36.49 -1.09%