European Stocks Advance, Led by Ryanair, Daimler; RBS Climbs

　　Aug. 8 (Bloomberg) -- European stocks rose, sending the Dow Jones Stoxx 600 Index to a five-week high, as declines in oil and metals prompted a rally in airlines, carmakers and retailers. 　　Ryanair Holdings Plc, Europe's largest discount carrier, and Daimler AG climbed as oil slipped to the lowest since May and copper fell to a six-month low. DSG International Plc, the U.K.'s biggest consumer-electronics retailer, surged 11 percent. Royal Bank of Scotland Group Plc jumped to a seven-week high on a smaller loss than analysts estimated. 　　``We were waiting for a decline in the oil price, which had been asphyxiating the economy,'' said Alexandre Iatrides, a fund manager at Richelieu Finance in Paris, which oversees $6.2 billion. ``RBS shares today illustrate investors' renewed confidence in the industry.'' 　　The Stoxx 600 added 0.8 percent to 289.28, capping this week's 3.2 percent advance. Royal Bank joined BNP Paribas SA and Societe Generale SA in posting earnings that surpassed analysts' estimates, pushing stocks to their third weekly gain in four weeks. 　　Shares pared their advance today after Fannie Mae, the largest U.S. mortgage-finance company, had its fourth straight quarterly loss and cut its dividend. Stocks rebounded, rising to the highs of the day as oil extended declines. 　　Concern that credit losses nearing $500 billion worldwide, accelerating inflation and record oil prices will stifle economic and profit growth has sent the Stoxx 600 down 21 percent this year. Bradford & Bingley, Taylor Wimpey Plc and Yell Group Plc led the retreat, losing more than 70 percent of their market value. 　　EADS, BAE Systems 　　European Aeronautic Defence & Space Co. and BAE Systems Plc gained today as the dollar rose against the euro and the pound. MTU Aero Engines Holding AG rallied on speculation the largest independent provider of jet-engine maintenance may be a takeover target. 　　National benchmark indexes rose in 13 of the 18 western European markets. France's CAC advanced 0.8 percent, while Germany's DAX added 0.3 percent, and the U.K.'s FTSE 100 climbed 0.2 percent. 　　Ryanair increased 11 percent to 2.815 euros. Air France, Europe's biggest airline, advanced 5.5 percent to 18.39 euros. 　　DSG International jumped 5.5 pence to 55 pence. Carrefour SA, the world's second-largest retailer, climbed 5.3 percent to 36.74 euros. 　　Crude for September delivery fell as much as $4.41, or 3.7 percent, to $115.61 a barrel on the New York Mercantile Exchange. Prices have retreated 7.2 percent this week. 　　Oil, Metals Retreat 　　Oil headed for its fourth decline in five weeks as demand fell and the dollar gained, reducing the appeal of commodities as an inflation hedge. 　　Daimler, the world's second-biggest maker of luxury cars, jumped 3.9 percent to 41.77 euros, and Bayerische Motoren Werke AG, the largest luxury-car maker, rose 6.5 percent to 29.43 euros. 　　A stronger dollar also boosts the value of sales in the U.S. currency when converted into euros and pounds, benefiting EADS and BAE Systems. 　　EADS, which controls planemaker Airbus SAS, rose 9.7 percent to 14.90 euros. EADS makes most of its sales in dollars. BAE, Europe's largest defense company, increased 2.8 percent to 475 pence. BAE makes 44 percent of sales in the U.S. and Canada. 　　The euro slumped to a five-month low against the dollar as traders pared bets the European Central Bank will raise interest rates as the economy slows. The pound dropped to a 17-month low against the dollar. 　　Copper slid in London, heading for a sixth straight weekly drop, on signs a slower global economy may curb demand for industrial metals. Aluminum and zinc also fell. 　　Royal Bank 　　Royal Bank of Scotland, the U.K.'s second-biggest bank, gained 3.2 percent to 240.5 pence. The bank posted a smaller loss than analysts estimated and said the 5.9 billion pounds ($11.4 billion) of writedowns it announced in April may be sufficient for the year. 　　HSBC Holdings Plc, Europe's biggest bank, gained 1.9 percent to 858.5 pence. Dexia SA, the world's largest lender to local governments, added 2.4 percent to 9.23 euros. 　　Financial firms are the worst-performing stocks worldwide this year as writedowns and credit losses cut earnings and force companies to raise capital. 　　Profit for European banks, insurers and brokerages will tumble 24 percent in 2008, almost 10-fold more than the 2.5 percent drop predicted for all companies in the pan-European Stoxx 600, according to analyst estimates compiled by Bloomberg. 　　MTU Aero Engines jumped 13 percent to 23.70 euros, the most since its June 2005 initial public offering, on speculation that the company might be a takeover target. 　　``Market rumors, combined with the current oil price and the weaker euro, are helping the shares,'' said Thorsten Pfeiffer, a trader at Lang & Schwarz Wertpapierhandelsbank AG in Dusseldorf, Germany. Eckhard Zanger, a spokesman at Munich-based MTU, said the manufacturer isn't aware of any move to buy the company.