European shares rose for a sixth straight day

European shares rose for a sixth straight day, reaching a maximum of two years after China refrained from raising interest rates when inflation increased.

Kazakhmys Plc pace gains in mining shares after copper rose to a record in London. Wellstream Plc jumped 5.4 percent after General Electric Co. agreed to buy the provider of oilfield services, some 800 million pounds ($ 1.3 billion). John Wood Group Plc rose 6.3 percent after agreeing to purchase PSN Ltd.

The benchmark Stoxx Europe 600 Index gained 0.3 percent to 277.14 at 3:11 pm in London, extending the longest winning streak since July. The indicator rose 1.9 percent last week to the highest level since September 2008 as U.S. consumer confidence advanced to a concern than six months and reduced the debt crisis of Europe sovereign derail economic recovery.

"We're seeing a bit of a relief rally on the back of the fact that China decided not to raise interest rates during the weekend," said Richard Hunter, head of London UK equities at Hargreaves Lansdown Plc. "The increases in interest rates are nevertheless expected that at some point as evidenced by the rate of inflation in China. There is no doubt that market sentiment remains fragile, particularly at low volume, so we could see a pull back if any negative news comes through. "

The People's Bank of China, which last week raised the reserve ratios for banks by half a percent, did not increase interest rates this weekend even though consumer prices rose at their fastest pace in more than two years November.

DAX, FTSE 100

National benchmark indexes advanced in 16 of 18 western European markets. Germany's DAX climbed 0.4 percent. Britain's FTSE 100 rose 0.9 percent, while France's CAC 40 rose 1.2 percent.

Policymakers of the Federal Reserve should hold its final meeting of 2010 and tomorrow may be a sign that they are open to encourage purchases of debt beyond the $ 600 billion already announced for the rapid growth of work to avoid deflation . Fed chairman, Ben S. Bernanke said in an interview with CBS Corp. s' "60 Minutes" program aired on 5 December to buy more government bonds is "very possible."

Union leaders this week to discuss the creation of a permanent mechanism to underpin the most indebted countries in the European Central Bank is developing plans to help the weakest lenders in the region.

At a summit in Brussels on December 16 and 17, the group will face skepticism from investors about their willingness to stop a sovereign debt crisis led to bailouts for Greece and Ireland, and threatens to spread.

Mining Companies

Kazakhmys rose 4 percent to 1,590 pence, Xstrata Plc advanced 2 percent to 1,469.5 pence and Rio Tinto Group added 1.7 percent to 4,471.5 pence after copper rose to a record on the London Metal Exchange. Chinese imports of copper products rose 29 percent last month.

Wellstream rebounded 5.4 percent to 787 pence after General Electric agreed to buy the provider of oilfield services-focused British in Brazil by 780 pence per share plus a special dividend of 6 pence per share.

Wood Group rose 6.3 percent to 519 pence after the oil and gas in the United Kingdom agreed to buy PSN services for a total enterprise value of 955 million U.S. dollars to create the world's leading provider of production services abandoned industrial facilities.

Q-Med AB increased 13 percent to 74.75 crowns after the Swiss maker of Cetaphil skin creams agreed to be acquired by Galderma SA for up to 7.45 billion kroner (1.08 billion U.S. dollars). Q-Med shareholders other than the founder and CEO Bengt Aagerup receive 75 crowns per share cash.

Yule Catto

Yule Catto & Co. rose 11 percent to 288 pence after the provider of polymers agreed to buy a manufacturer of latex TowerBrook Capital Partners for € 443 million (585 million U.S. dollars) to go to market materials used in gloves .

Rhodia SA rose 5.4 percent to € 22.44 after Credit Suisse Group AG initiated coverage of the chemical plant with an "outperform" recommendation.

Renault gained 2.3 percent to € 45.03 after Le Figaro reported that sales for the year may reach 38 million euros, up from 33.7 million euros in 2009. The newspaper did not say where it obtained the information.

Edison SpA dropped 5.5 percent to 87.85 cents as people with direct knowledge of the situation, said the second largest energy producer in Italy is considering a capital increase of more than 1 million euros to strengthen its balance sheet .

"This option has not been taken into account for any of the organs of his company," Edison said in a statement in response to the report.

Intercell AG fell 41 percent to € 9.92 after a review of the vaccine to prevent diarrhea in travelers not in two studies of patients, which led to the company forecast a bigger loss. Deutsche Bank cut its rating for Vienna-based company to "sell" from "buy."