Nov. 4 (Bloomberg) -- European stocks rebounded from a one- month low as earnings at companies from Societe Generale SA to Marks & Spencer Group Plc beat analysts’ estimates and Nissan Motor Co.’s forecast boosted automakers.

Societe Generale, France’s second-biggest bank by market value, surged 4.6 percent after third-quarter earnings doubled. Marks & Spencer, the U.K.’s largest clothing retailer, climbed 6 percent as British consumer confidence also held at a 1 1/2-year high. Renault SA paced a surge in carmakers as Nissan narrowed its full-year loss forecast after the close of trading in Tokyo.

The Dow Jones Stoxx 600 Index rose 1.8 percent to 239.13 as all 19 industry groups gained, climbing from the lowest level since Oct. 2. The regional gauge has slipped 4.1 percent from this year’s high on Oct. 19 amid speculation an eight-month rebound has outpaced the prospects for economic growth. The measure is still up 51 percent since March.

“The earnings data proves that the situation is getting better,” said Rolf Biland, Zurich-based chief investment officer at VZ Vermoegenszentrum, which oversees $4.9 billion. “The big test will be whether we’ll see more progress during the next earnings season. Right now it can really go either way.”

The Federal Reserve may today indicate its $1 trillion injection into the economy is helping to revive growth without requiring an increase in interest rates from near zero, economists said. The Federal Open Market Committee is due to release its monetary policy statement after the close of European markets.

‘Don’t Expect’ Guidance

“We don’t expect a lot of guidance from the Fed,” Biland said. “The data isn’t clear enough to be more optimistic in their wording.”

National benchmark indexes advanced in all 18 western European markets. The U.K.’s FTSE 100 rose 1.4 percent and France’s CAC 40 surged 2.4 percent. Germany’s DAX added 1.7 percent as Adidas AG increased.

Societe Generale climbed 4.6 percent to 45.64 euros. Net income rose to 426 million euros ($627 million) from 183 million euros a year before as its investment-banking unit returned to profit. That compared with the 399 million-euro median estimate of 11 analysts surveyed by Bloomberg.

Marks & Spencer rallied 6 percent to 361.5 pence. The retailer reported net income of 224.3 million pounds ($371 million), exceeding the 201 million-pound median estimate of 12 analysts surveyed by Bloomberg, and said it made a “good start” to the third quarter.

Next Gains

Next Plc, the U.K.’s second-biggest clothing retailer, soared 5.6 percent to 1,912 pence after raising its forecast for the year-end holiday trading period, as third-quarter sales beat estimates driven by new ranges of women’s clothing.

U.K. consumer confidence held at the highest level in 1 1/2 years last month as house prices recovered, Nationwide Building Society said today. An index of sentiment was at 72 in October, the same as in September, Britain’s biggest customer-owned lender said.

Renault rallied 4.1 percent to 31.38 euros, leading gains among automakers after Nissan narrowed its full-year loss forecast as government subsidies boosted vehicle demand. France’s second-largest carmaker owns 44 percent of Yokohama- based Nissan, Japan’s third-biggest auto manufacturer, and the two companies cooperate on some parts, production and marketing.

A measure of automakers on the Stoxx 600 advanced 3.1 percent, posting the third-steepest gain among 19 industry groups on the gauge.

European Earnings

Earnings have beaten analysts’ estimates at 60 percent of the 174 companies in the Stoxx 600 to have announced results since Oct. 7, according to Bloomberg data. That compares with 84 percent of the 378 companies in the Standard & Poor’s 500 Index that have topped forecasts during the same period.

BHP Billiton Ltd., the world’s biggest mining company, advanced 3.3 percent to 1,705 pence and Rio Tinto Group, the third-largest, gained 2.8 percent to 2,863 pence. Copper, lead, nickel, tin and zinc rose on the London Metal Exchange.

Nobel Biocare Holding AG surged 6.9 percent to 30.86 Swiss francs as the world’s biggest maker of tooth implants reported third-quarter profit almost double what analysts had forecast after it reduced costs and benefited from currency gains.

Taylor Wimpey Plc triggered a rally in homebuilder stocks after saying the average price of homes on order rose 9 percent from the first half as the market continues to be “significantly better” than last year.

Taylor Wimpey, Persimmon

Taylor Wimpey, the U.K.’s largest homebuilder by market value, added 8.2 percent to 40 pence. Persimmon Plc, the third- biggest by volume, gained 11 percent to 424 pence, with Redrow Plc surging 7.3 percent to 149.5 pence and Berkeley Group Holdings Plc rising 6.7 percent to 887 pence.

Bank of Ireland Plc, the nation’s largest lender by market value, jumped 25 percent to 1.75 euros, erasing yesterday’s 12 percent slump. The bank stuck with its forecast for loan losses in the three years through March 2011 and said the pace of economic decline may be easing. Allied Irish Banks Plc rallied 17 percent to 1.69 euros.

Adidas, the world’s second-biggest sporting-goods maker, added 3.8 percent to 33.87 euros after reporting third-quarter net income of 213 million euros, topping analysts’ estimates for 210.8 million euros.

Clariant AG rose 3.1 percent to 10.14 francs after it predicted earnings will increase in the fourth quarter from a year earlier as the benefit of job cuts and plant closures raises profitability. The world’s largest maker of chemicals used in printing ink is extending a cost-cutting program and expects to spend 200 million francs ($195 million) to 300 million francs this year on restructuring.

Carlsberg A/S sank 5.3 percent to 341.25 kroner, the biggest decline on the Stoxx 600. The world’s fourth-largest brewer cut its full-year revenue forecast and reported third- quarter net income that missed analysts’ estimates.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net

Last Updated: November 4, 2009 12:34 EST