European Stocks Rise for Third Day as Richemont, ARM Gain

European stocks advanced for a third day as companies from ARM Holdings Plc to Cie. Financiere Richemont SA reported better-than-estimated results. Asian shares retreated and U.S. index futures were little changed.

ARM, the designer of chips for Apple Inc.'s iPhone, rallied the most in nine months. Richemont surged the most since January as the maker of Cartier jewelry said full-year net income rose 30 percent. Michelin (ML) & Cie. dropped 2.2 percent after the tiremaker reported a decline in first-quarter sales.

The Stoxx Europe 600 Index (SXXP) increased 0.6 percent to 287.25 at 8:25 a.m. in London, as more than five shares climbed for every one that fell. The benchmark measure has still retreated 3.7 percent from this year's high on March 14 as economic data from the U.S. to China missed forecasts and Cyprus reignited concern about the euro-area debt crisis.

"We are reasonably positive and look for another 7 to 10 percent on equities worldwide this year," Alan Higgins, who oversees about $44 billion as chief investment officer at Coutts & Co. in London, told Francine Lacqua on Bloomberg Television. "It is equities for us. Provided the weaker growth doesn't result in an earnings crash, the market can come to terms with weaker growth."

Standard & Poor's 500 Index futures increased less than 0.1 percent today. The MSCI Asia Pacific Index (MXAP) fell 0.1 percent as a preliminary report showed Chinese manufacturing expanded less than economists estimated.

China Economy

A Chinese Purchasing Managers' Index for April released by HSBC Holdings Plc and Markit Economics today showed a preliminary reading of 50.5, compared with a final 51.6 for March. That was below the median 51.5 estimate in a Bloomberg survey of 11 analysts. A reading above 50 indicates expansion.

Separate PMI's for the euro area and the U.S. are due for publication today. Manufacturing in the euro region contracted for a 21st straight month in April, according to a Bloomberg survey of economists.

Some 19 companies in the Stoxx 600 report results today, according to data compiled by Bloomberg. Of those that have posted earnings since April 8, about 59 percent have beaten analysts' profit estimates, while 61 percent missed sales projections, Bloomberg data show. In the U.S., 35 S&P 500-listed (SPX) stocks are due to post results.

ARM surged 7.9 percent to 938 pence, the biggest jump since July 25. Revenue in the quarter ending in March rose 29 percent to 170.3 million pounds ($260 million), the Cambridge, England- based company said. Analysts had predicted 160 million pounds, according to the average of a Bloomberg survey.

Richemont Rises

Richemont rallied 5.1 percent to 71.65 Swiss francs, the biggest gain since Jan. 9. The company said full-year net income increased about 30 percent, boosted by favorable exchange rates. Sales rose 14 percent, or 9 percent on a constant-currency basis.

Michelin slid 2.2 percent to 58.66 euros after Europe's largest tiremaker reported an 8.1 percent decline in first- quarter revenue to 4.88 billion euros ($6.36 billion). Sales missed the 4.97 billion-euro average of four analyst estimates compiled by Bloomberg. The tiremaker, reiterating forecasts of "steady" volume and "stable" earnings for 2013, said it may look at reorganizing in the absence of a market recovery.

Elsewhere, Telecom Italia SpA rose 1.8 percent to 58.8 euro cents. Two people familiar with the matter said the Italian phone company that's exploring a separation of its fixed-line assets is considering a sale of an initial 30 percent stake in a new company to state lender Cassa Depositi e Prestiti.