(Bloomberg) -- European stocks extended their highest level since July 2007 as investors awaited a report on U.S. payrolls and deal activity increased. The Stoxx Europe 600 Index rose 0.3 percent to 394.83 at 11:40 a.m. in London. It is poised for a fifth straight weekly gain as the European Central Bank committed to start bond purchases next week. Investors are seeking clues on the timing of a U.S. rate increase from economic data. A report at 8:30 a.m. in Washington will show U.S. payrolls rose by 235,000 in February, a slower pace than a month earlier, economists forecast. Futures on the Standard & Poor’s 500 Index lost less than 0.1 percent. “Markets are now waiting for news from the U.S. to get a slight idea how the U.S. economy is doing and where the interest rates may be in the near-term future,� said Peter Braendle, who manages about $450 million at Swisscanto Asset Management in Zurich. “European stocks are for now cheaper than other developed markets. The region will profit from the weak currency as reforms show effect and companies operate efficiently.� The ECB’s announcement of quantitative easing has helped buoy the Stoxx 600 up 15 percent this year, and pushed the euro to an 11-year low versus the dollar. The equity gauge trades at 16.7 times estimated earnings, still cheaper than the 17.7 multiple for the S&P 500. Corporate Deals Some stocks rose amid deal activity. Thomas Cook Group Plc surged 19 percent after the U.K. tour operator said Fosun International Ltd. will buy a 5 percent stake. Banco BPI SA advanced 4.8 percent after its board advised shareholders to reject a bid by CaixaBank SA because the offer is too low. Banco Comercial Portugues SA, which said this week it’s prepared to assess a merger with BPI, added 2 percent. CaixaBank rose 2.8 percent. Scor SE gained 2 percent after a person familiar with the matter said Sompo Japan Nipponkoa Holdings Inc. plans to buy a 15 percent stake in the French reinsurer. NNIT A/S shares jumped 30 percent on its debut in Copenhagen. It earlier soared as much as 46 percent. Novo Nordisk A/S, the Scandinavian drugmaker that will get proceeds from the initial public offering after bringing NNIT to market, rose 1 percent. PSA Peugeot Citroen climbed 3.1 percent after Euronext NV said the French carmaker will replace Gemalto NV on the benchmark CAC 40 Index from March 23. Bureau Veritas SA dropped 3.4 percent after Wendel SA said it is selling an 11 percent stake in the testing company. A gauge of utilities posted the worst performance among 19 Stoxx 600 industry groups. EON SE lost 1.5 percent after Banco Santander SA cut its rating on the German power producer. RWE AG fell 1 percent. To contact the reporters on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net; Roxana Zega in Zurich at rzega@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Namitha Jagadeesh

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