(Bloomberg) -- European stocks climbed, extending a seven-year high, as Bayer AG and British American Tobacco Plc rose after reporting earnings, while Allianz SE fell. The Stoxx Europe 600 Index added 0.3 percent to 387.81 at 9:29 a.m. in London. It rose earlier this week as Greece reached a bailout deal, before dropping 0.1 percent on Wednesday. The benchmark measure is up 5.7 percent in February, pushing gains this year to 13 percent. “I still think equities will go higher, but it will be a much bumpier ride from here,� said William Hobbs, head of equity strategy at Barclays Plc’s wealth-management unit in London. “Europe had a very low bar to hop over going into 2015. People were very worried about Greece, elections, geopolitics, and the economic recovery. We’re seeing green shoots everywhere now, and you have the ECB being much more aggressive.� Germany’s DAX Index rose 0.2 percent as data showed unemployment in February fell twice as much as forecast. The volume of shares changing hands in Stoxx 600 companies was 8 percent lower than the 30-day average, data compiled by Bloomberg show. Some 38 companies on the Stoxx 600 report earnings on Thursday. Bayer added 1.7 percent after forecasting an increase in 2015 sales. BAT gained 1.5 percent as full-year operating profit beat analysts’ estimates. Solvay, GDF Solvay SA rallied 4 percent after reporting quarterly net income that was more than double the average analyst projection. GDF Suez SA gained 1.2 percent after announcing a plan to reduce capital expenditure and posting annual net income in line with estimates. Allianz lost 2.4 percent after fourth-quarter profit unexpectedly fell, with Bill Gross’s exit at Pacific Investment Management Co. spurring clients to withdraw assets. Cie. de Saint-Gobain SA slipped 2.2 percent as Europe’s biggest supplier of building materials reported annual net income that missed analysts’ predictions. Greece’s ASE Index slid for a second day, dragged down by bank shares. It surged to a two-month high on Tuesday after the Greek government reached an agreement. The national benchmark measure has still jumped 24 percent in February, poised for its best monthly performance since 1998. To contact the reporters on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net; Sofia Horta e Costa in London at shortaecosta@bloomberg.net To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net

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