European stocks climbed for a third day, the longest winning streak for the Stoxx Europe 600 Index in five weeks, as a report showed that U.S. consumer spending rebounded last month.

National benchmark indexes advanced in 15 of the 18 western-European markets. France's CAC 40 climbed 1 percent, Germany's DAX added 0.6 percent and the U.K.'s FTSE 100 jumped 1.3 percent.

Alcatel-Lucent rose 6.4 percent to 1.40 euros. Morgan Stanley reiterated its overweight recommendation, which is similar to a buy rating, after Alcatel yesterday started a 550 million-euro ($716 million) convertible bond issue and bought back debt as part of its strategy to reduce financing costs. The brokerage said the plan would benefit shareholders.

Alcatel said as markets closed that it raised the amount of the sale to 629 million euros.

Drax surged 7.3 percent to 573 pence, after the U.K. Department of Energy and Climate Change set the subsidy rates for power from renewable energy plants. The government said it will pay pay biomass-conversion plants 105 pounds per megawatts per hour.

Drax brought the first converted biomass unit at its coal-burning plant into service in April.

DS Smith Plc climbed 5.4 percent to 252.7 pence. The paper company increased its dividend by 36 percent to 8 pence apiece, more than analysts had estimated. DS Smith also reported full-year revenue and earnings that beat analysts' estimates. The company added that the current year has started well, matching its expectations.

Subsea 7 tumbled 13 percent to 106 kroner after the oil-field services provider said it no longer expects full-year earnings to grow from 2012. The Norwegian company increased its estimate for the full-life loss on the Guara-Lula NE project off the coast of Brazil.

U.S. stock futures rose as reports showed consumer spending rebounded in May and fewer Americans filed claims for unemployment last week.

Global Stocks:

Nikkei 13,213.55 +379.54 +2.96%

Hang Seng 20,440.08 +101.53 +0.50%

Shanghai Composite 1,950.01 -1.48 -0.08%

FTSE 6,212.74 +47.26 +0.77%

CAC 3,737.86 +11.82 +0.32%

DAX 7,956.66 +15.67 +0.20%

Crude oil $95.77 +0.28%

Gold $1231.10 +0.11%

Upgrades:

Downgrades:

Other:

Cisco Systems (CSCO) target raised to $28 from $25 at Stifel

Apple (AAPL) target lowered to $440 from $480 at Susquehanna

European stocks were little changed, following the Stoxx Europe 600 Index's largest two-day rally in 11 months, as investors awaited a report on U.S. personal spending. U.S. index futures were also little changed, while Asian shares rallied.

The Stoxx 600 was unchanged at 284.53 at 11 a.m. in London after falling as much as 0.3 percent and rising as much as 0.2 percent. The gauge has tumbled 5.5 percent in June, its first monthly retreat in a year. Standard & Poor's 500 Index futures increased 0.2 percent today, following a two-day rally for the U.S. equity benchmark. The Federal Reserve chairman indicated on June 19 that the central bank may start paring its bond-buying program if the economy strengthens. Stocks rebounded yesterday after a report showing slower-than-estimated U.S. economic growth fueled speculation that the central bank will maintain stimulus. The Stoxx 600 has lost 3.2 percent this quarter, its first drop in a year, paring its advance in 2013 to 1.7 percent.

The federal government releases economic data at 8:30 a.m. that may show U.S. personal spending rose in May at the fastest pace in three months. A separate report from the Labor Department at the same time may show jobless claims fell last week.

Subsea 7 tumbled 16 percent to 103.10 kroner after saying it no longer expects full-year earnings to grow from 2012. The Norwegian company increased its estimate for the full-life loss on the Guara-Lula NE project off the coast of Brazil.

Solvay retreated 4.9 percent to 97.70 euros, the biggest drop on a gauge of European chemical makers. Lanxess AG slid 4.7 percent to 45.95 euros and BASF SE lost 3 percent to 67.62 euros after JPMorgan downgraded all three companies to underweight, which is similar to a sell recommendation.

Bankia added 2.2 percent to 59.7 euro cents as the banking group bailed out by the Spanish government last year sold the holding in IAG (IAG) that it obtained in the 2011 merger of British Airways and Iberia.

The company's Bankia Bolsa SA brokerage arm, together with Bank of America Corp., sold the 224.3 million IAG shares at 256 pence apiece, according to a statement.

DS Smith Plc (SMDS) climbed 4.3 percent to 250 pence. The paper company increased its dividend 36 percent to 8 pence apiece, more than analysts had estimated. DS Smith also reported full-year revenue and earnings that beat analysts' estimates. The company added that the current year has started well, matching its expectations.

FTSE 100 6,189.45 +23.97 +0.39%

CAC 40 3,727.65 +1.61 +0.04%

DAX 7,948.31 +7.32 +0.09%

Asian stocks rose, with the regional benchmark index on course for its biggest gain since September, after slower-than-estimated U.S. economic growth stoked speculation the Federal Reserve may hold back from reducing stimulus.

Nikkei 225 13,213.55 +379.54 +2.96%

Hang Seng 20,513.42 +174.87 +0.86%

S&P/ASX 200 4,811.3 +79.59 +1.68%

Shanghai Composite 1,950.01 -1.48 -0.08%

Samsung Electronics Co., the world's largest maker of smartphones, climbed 6.2 percent in Seoul.

China Gas Holdings Ltd. gained 5.4 percent in Hong Kong after the supplier of natural gas to 172 Chinese cities posted earnings that beat estimates.

Newcrest Mining Ltd., Australia's biggest gold producer, jumped 6.3 percent as the bullion headed for its first advance in four days.

Nikkei 225 12,834.01 -135,33 -1,04%

Hang Seng 20,194.33 338,61 1,71%

S & P / ASX 200 4,731.7 75,74 1,63%

Shanghai Composite -9,02 -0,46 1,950.49%

FTSE 100 6,165.48 +63.57 +1.04%

CAC 40 3,726.04 +76.22 +2.09%

DAX 7,940.99 +129.69 +1.66%

DJIA 14,910.10 149.83 1.02%

S&P 500 1,603.26 15.23 0.96%

NASDAQ 3,376.22 28.34 0.85%