European stocks rose, led by steelmakers including Arcelor SA and construction companies such as Amec Plc. The Dow Jones Stoxx 50 Index rose 0.2 percent to 2655.59 as of 11:09 a.m. in London. The Stoxx 600 advanced 0.4 percent. The Euro Stoxx 50, a benchmark for the 12 countries sharing the euro, climbed 0.1 percent. Steelmakers gained after the International Iron and Steel Institute in Brussels said European producers of the metal raised production for a fourth straight month in February to benefit from a price increase.
Morgan Stanley raised its price target on Arcelor, the world's biggest steelmaker, and its recommendation on Corus Group Plc, Europe's No. 3, on expectation steel prices will increase. Arcelor gained 1.8 percent to 13.87 euros. Morgan Stanley raised its price forecast for the shares by 1 euro to 18.50 euros. Corus climbed 0.6 percent to 38.75 pence after it was raised to ``overweight'' from ``equal-weight.'' ``We are now more positive that a long and strong steel cycle is under way,'' analysts led by Charles Spencer said in an e-mailed note to clients. Alfred McAlpine Plc, a U.K. builder and services company, said it and partner Amec Plc won a 330 million-pound ($605 million) contract to upgrade a U.K. highway. McAlpine gained 0.9 percent to 295.75 pence. Amec advanced 2.3 percent to 305.25 pence///www.bloomberg.com