By David Merritt March 23 (Bloomberg) -- Stocks rose, driving the Stoxx 600 Europe Index to an 18-month high, as companies from Legal & General Group Plc to Bank of China Ltd. posted earnings that beat analysts’ estimates. The dollar strengthened. The benchmark gauge for European equities advanced 0.5 percent at 11:25 a.m. in London. Futures on the Standard & Poor’s 500 Index increased 0.1 percent. The dollar appreciated against 15 of its 16 most-traded counterparts tracked by Bloomberg. Greek bonds and stocks rallied. Bank of China, the nation’s third-largest lender, reported a more than fourfold increase in earnings, while the U.K. insurer Legal & General swung to a 2009 profit and increased its dividend. About 62 percent of companies in the MSCI World Index that have reported quarterly results since Jan. 11 have beaten per-share estimates, according to data compiled by Bloomberg. The dollar advanced against the euro as investors speculated the Federal Reserve will raise interest rates faster than the European Central Bank as Greece’s debt weighs on the region. “Earnings remain a tailwind,” Mislav Matejka, the head of European equity strategy at JPMorgan Chase & Co. in London, wrote in a report today. “Lead indicators remain robust.” L&G, Cairn The MSCI World gained 0.1 percent. In Europe, more than three shares rose for every one that fell. Legal & General advanced 2.7 percent in London. Cairn Energy Plc, the operator of India’s largest onshore oil field, jumped 11 percent after raising output forecasts. Saipem SpA surged 3.6 percent in Milan and Technip SA rallied 5.6 percent in Paris after Morgan Stanley recommended the oil-services providers. The MSCI Asia Pacific Index rose less than 0.1 percent. Australia & New Zealand Banking Group Ltd. advanced 3 percent in Sydney after saying it will add branches in Taiwan. Gains were limited as Japan’s Nikkei 225 Stock Average fell 0.5 percent after All Nippon Airways Co. forecast a wider loss and real- estate companies sank for a third day. The gain in U.S. futures indicated the S&P 500 may rise for a second day, before a report that may show the rate of decline in sales of existing homes slowed last month. A National Association of Realtors’ report at 10 a.m. in Washington may show that February sales of existing homes came in at a 5 million pace, down 1 percent from 5.05 million in January, according to the median forecast of 74 economists surveyed by Bloomberg News. Google Declines Google Inc. slipped 0.2 percent in German trading. The company defied China’s self-censorship rules by redirecting mainland users to an unfiltered Hong Kong Web site, threatening its ability to operate in the world’s largest Internet market. Greek bonds rose, with the yield on the two-year government note declining 22 basis points to 5.01 percent. The ASE Index of stocks climbed 1.7 percent, the most in almost two weeks. The cost of protecting against a Greek default using swaps fell, with contracts retreating 5 basis points to 338, according to CMA DataVision. European Union leaders will meet March 25-26 to discuss aid to Greece. The MSCI Emerging Markets Index rose for the first time in four days, climbing 0.3 percent. Eastern and central European indexes led the advance, with Ukraine’s PFTS Index gaining 3.8 percent, Romania’s Bucharest BET Index up 2 percent and Hungary’s Budapest Stock Exchange Index advancing 1.1 percent. Pound Slides The dollar strengthened most against the pound, rising 0.7 percent, and gained 0.5 percent compared with the euro. The pound declined against all 16 of its most-traded peers after the government said Britain’s inflation rate dropped more than economists forecast in February. Treasuries were little changed before the U.S. government auctions a record-tying $44 billion of two-year notes today, the first of three sales this week totaling $118 billion. Credit-default swaps on the Markit iTraxx Crossover Index of 50 mostly high-yield European companies dropped 12 basis points to 447, signaling an improvement in investor perceptions of credit quality, according to JPMorgan Chase & Co. Copper for delivery in three months fell $15 to $7,435 a metric ton on the London Metal Exchange. Crude oil for April delivery dropped 0.3 percent to $81.35 a barrel in New York trading. Gold slipped 0.4 percent to $1,098.30 an ounce. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net.

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