European stocks advanced, after posting their first weekly loss since October, as Iran agreed to limit its nuclear program.

Iran agreed to limit its nuclear program in exchange for as much as $7 billion in relief from economic sanctions over six months. Iran and the six countries it has entered a pact with -- the U.S., U.K., Germany, France, Russia and China -- aim to conclude a comprehensive deal during that time.

The accord is the first major breakthrough in the dispute over Iran’s nuclear program since 2003. Questions over the purpose of that plan had deepened the rift between Shiite and Sunni Muslims in the Middle East, sparked threats of military action by the U.S. and Israel, and raised concerns that the oil-rich region was heading for a nuclear arms race.

In the U.S., the number of contracts Americans signed to buy previously-owned homes unexpectedly fell in October for a fifth consecutive month. An index of pending home sales decreased 0.6 percent in October, following a revised 4.6 percent drop a month earlier, data from the National Association of Realtors showed. The median forecast of economists in a Bloomberg survey had called for a gain of 1 percent.

National benchmark indexes advanced in 15 of the 18 western European markets. The U.K.’s FTSE 100 climbed 0.3 percent, while France’s CAC 40 added 0.6 percent. Germany’s DAX jumped 0.9 percent.

A gauge of travel and leisure companies gained 1.6 percent for the biggest jump among 19 industry groups in the Stoxx 600. Brent crude futures fell as much as 2.7 percent today. IAG, the parent of British Airways, climbed 2.8 percent to 372.8 pence and Air France advanced 1.9 percent to 7.64 euros.

Peugeot gained 5.1 percent to 10.75 euros after two people familiar with the matter said the board approved hiring former Renault SA Chief Operating Officer Carlos Tavares to replace Philippe Varin as CEO. Varin, 61, plans to step down next year. Europe’s second-largest carmaker is also likely to benefit from the Iran accord. Peugeot sold 458,000 vehicles in Iran in 2011, before the trade sanctions, making it the company’s second-biggest market after France.

Renault, which sold more than 100,000 vehicles in Iran in 2012, added 1.4 percent to 65.33 euros.

Novartis AG advanced 0.8 percent to 72.75 Swiss francs after Natixis upgraded the shares to buy from neutral. The drugmaker’s progress in research for a breast-cancer treatment and the $5 billion share buyback announced last week will result in higher earnings, the brokerage said in a note.

Banco Popolare SC declined 4.2 percent to 1.28 euros and Unione di Banche Italiane SCPA slid 3.1 percent to 4.88 euros after Societe Generale SA reduced its 12-month price forecast on the shares.

U.S. stock-index futures gained, as Iran agreed to limit its nuclear program.

Global markets:

Nikkei 15,619.13 +237.41 +1.54%

Hang Seng 23,684.45 -11.83 -0.05%

Shanghai Composite 2,186.12 -10.26 -0.47%

FTSE 6,697.24 +22.94 +0.34%

CAC 4,303.27 +24.74 +0.58%

DAX 9,303.75 +84.71 +0.92%

Crude oil $93.41 (-1.51%).

Gold $1230.10 (-1.17%).

European stocks advanced, after posting their first weekly loss since early October, as Iran agreed to limit its nuclear program and as investors awaited a report on U.S. pending-home sales. U.S. stock-index futures and Asian shares climbed.

The Stoxx Europe 600 Index advanced 0.5 percent to 324.36 at 10:39 a.m. in London. The benchmark gauge last week slipped less than 0.1 percent, the first loss since Oct. 4. It has surged 16 percent this year as central banks around the world maintained stimulus measures.

The accord is the first major breakthrough in the dispute over Iran’s nuclear program since 2003. Questions over the purpose of that plan had deepened the rift between Shiite and Sunni Muslims in the Middle East, sparked threats of military action by the U.S. and Israel, and raised concerns that the oil-rich region was heading for a nuclear arms race.

In the U.S., an index of pending home sales increased 1.1 percent in October, following a 5.6 percent drop a month earlier, economists forecast.

A gauge of travel and leisure companies posted the biggest jump among 19 industry groups in the Stoxx 600, gaining 1.7 percent.

IAG, the parent of British Airways, climbed 3 percent to 373.6 pence and Air France advanced 1.5 percent to 7.62 euros.

Peugeot gained 3.7 percent to 10.61 euros after two people familiar with the matter said CEO Philippe Varin plans to step down next year and hire former Renault SA (RNO) Chief Operating Officer Carlos Tavares as his replacement. Pierre-Olivier Salmon, a Peugeot spokesman, declined to comment. Europe’s second-largest carmaker is also likely to benefit from the Iran accord. Peugeot sold 458,000 vehicles in Iran in 2011, before the trade sanctions, making it the company’s second-biggest market after France.

Fresenius Medical Care, the world’s biggest provider of kidney dialysis, jumped 8.6 percent to 51.99 euros, the largest gain since October 2008. Medicare & Medicaid Services issued a final rule on Nov. 22 that keeps payments to companies including Fresenius Medical Care unchanged for 2014. The original proposal was for a 9.4 percent cut.

Banco Popolare SC (BP) declined 3.5 percent to 1.29 euros and Unione di Banche Italiane SCPA (UBI) slid 2.3 percent to 4.93 euros after Societe Generale SA reduced its 12-month price forecast on the shares.

The French brokerage estimated that Italian banks will need 44 billion euros more in provisions for their bad loans. Italian lenders’ non-performing loans as a proportion of lending rose in September to the highest level since November 1999, according to data published by the Italian Banking Association on Nov. 19.

FTSE 100 6,694.9 +20.60 +0.31%

CAC 40 4,299.91 +21.38 +0.50%

DAX 9,297.25 +78.21 +0.85%

Asian stocks rose, with the regional benchmark index rebounding from last week’s drop, as the yen weakened, Iran agreed to limit its nuclear program and investors bet improving U.S. economic data will boost earnings.

Nikkei 225 15,619.13 +237.41 +1.54%

S&P/ASX 200 5,352.83 +16.92 +0.32%

Shanghai Composite 2,186.12 -10.26 -0.47%

Nikon Corp. advanced 3.6 percent as the yen touched the weakest level in almost six months against the dollar, boosting the outlook for Japanese exporters.

Warrnambool Cheese & Butter Factory Co. climbed 2 percent in Sydney after Saputo Inc. raised its offer for the dairy.

Beadell Resources Ltd. slumped 8.4 percent, leading Australian gold miners lower as the price of the precious metal retreated after Iran agreed to limit its nuclear program in exchange for as much as $7 billion of relief from economic sanctions.