European stocks climbed, led by Roche Holding AG, after its Genentech Inc. unit won U.S. approval to sell a cancer drug. Air Liquide SA, the biggest industrial-gases manufacturer, gained after forecasting rising profit this year. The Dow Jones Stoxx 50 Index rose 0.6 percent to 2775.65 as of 9:25 a.m. in London. The benchmark may post its fifth monthly gain today, the longest streak since April 1999. The Stoxx 600 also advanced 0.6 percent. The Euro Stoxx 50, a benchmark for the 12 countries sharing the euro, climbed 0.8 percent.
European benchmarks have advanced no less than 45 percent in an almost yearlong rally, helped by optimism that an accelerating economy and interest rates at 60-year lows will boost profits. Inflation in the euro zone probably stayed below the European Central Bank's limit in February, giving policy makers leeway to consider reducing rates further, a survey showed. Annual inflation probably stayed below 2 percent this month, according to the median estimate of 31 economists surveyed by Bloomberg News. February's inflation report for the region will be published at noon Central European Time today. Benchmark indexes rose in all 17 Western European markets. Germany's DAX Index added 0.8 percent. France's CAC 40 Index rose 0.8 percent. The U.K.'s FTSE 100 Index increased 0.6 percent. March futures on the Euro Stoxx 50 advanced 0.5 percent to 2910.
`Most Important' Drug
Roche, the world's largest maker of cancer medicines and diagnostic tests, rose 3.1 percent to 131.25 Swiss francs, their highest level in almost two years. Genentech, in which it has a majority stake, won U.S. approval for Avastin, the first medicine that fights cancer by cutting off a tumor's blood supply. ``It's their most important drug launch ever and most likely the most important oncology-drug launch ever,'' said Sven Borho, a partner at Orbimed Advisors, which has about $5 billion under management, including 3.1 million Genentech shares. Colon-cancer patients will take Avastin for an average of 10 months at a total cost of about $44,000, Neil Cohen, a spokesman for Genentech, said. Roche also was dismissed in a U.S. price- fixing lawsuit against the drug industry. Air Liquide advanced 1.7 percent to 141.6 euros. The company said second-half profit rose 4.9 percent to 397.4 million euros ($495 million), helped by cost cuts and demand for hydrogen. It said 2004 profit will climb, based on current exchange rates. RWE AG, Europe's third-largest utility, rose 4.1 percent to 34.88 euros after analysts at Deutsche Bank AG raised their recommendation on the shares to ``buy'' from ``hold,'' citing the company's improving earnings.
WPP, Rank Decline
WPP Group Plc, the world's third-largest advertising and marketing company, fell 1.8 percent to 619 pence after saying full-year net income rose to 208.4 million pounds ($388 million) from 88 million pounds in 2002. The median forecast of seven analysts surveyed by Bloomberg News was 232 million pounds. Rank Group Plc, the British owner of the Hard Rock Cafe chain, dropped 2.5 percent to 307.25 pence. Profit in 2003 fell 27 percent to 84.6 million pounds as the dollar's decline against the pound eroded U.S. income and deterred some American tourists from spending at its London restaurants and casinos.
Corus Group Plc, Europe's No. 3 steelmaker, added 5.3 percent to 44.5 pence, extending its year-to-date advance to 48 percent. Alisher Usmanov, the company's second-biggest shareholder, increased his stake for the third time this year. Usmanov, who runs OAO Gazprom's investment arm, increased its stake to 11.03 percent after buying about 44 million shares, Corus said//www.bloomberg.com