E.ON, Europe's largest power company, climbed after it said fourth-quarter pro"t more than doubled. Suez, the world's second-biggest water utility, rose after posting a 54% jump in second-half pro"t. Stocks in the region have recouped more than a third of what they lost in a "veday global rout triggered on 27 February by a sell-off in Chinese equities.

The Dow Jones Stoxx 600 Index rallied 1.9% to 367.35, the biggest gain since the week ending 15 December, as all 18 industry groups increased. The Stoxx 50 climbed 1.7%, and the Euro Stoxx 50, a measure for the 12 countries using the euro, gained 2%.

So far, 65.2% of the Stoxx 50 companies that reported fourthquarter results or sales have beaten analysts' estimates. In 2007, earnings for Stoxx 600 companies will rise 7.4 % on average, according to estimates compiled by FactSet Research Systems.

National benchmarks rose in all 18 western European markets. Germany's DAX added 1.6 %, and France's CAC 40 climbed 1.9 %. The UK's FTSE 100 advanced 2.2%. Indexes extended this week's gains after a US job market report today showed employers added more jobs than economists estimated.

E.ON gained 3.2%. Net income climbed to Euro2.43bn ($3.19 bn) from Euro1 bn a year earlier, based on Bloomberg calculations from annual earnings released by the Dusseldorf, Germany-based company on 7 March. Pro"t beat the Euro2.02 bn median estimate in a Bloomberg survey.

Suez added 4.3%. The company reported 2006 net income of Euro3.6 bn on 8 March, exceeding the median estimate of 3.5 bn in a Bloomberg survey of analysts.

Balfour Beatty, the UK's biggest construction company, gained 6.9%. The London-based company said second-half pro"t jumped 29% after it won contracts to relay electricity lines and upgrade governmentfunded housing.

Royal & Sun Alliance, the UK's second-biggest non-life insurer, rallied 12% on speculation the company may be bought by Sampo Oyi.

Alliance Boots soared 17%, for the best performance among Stoxx 600 members. The owner of the UK drugstore chain said said on Friday it had received a "preliminary and highly conditional" takeover approach, without naming the suitor.

Vallourec, a French maker of steel tubes used to carry oil and gas, dropped 8.4%, the steepest decline in the Stoxx 600, after the company forecast littlechanged pro"tability for 2007.

Bloomberg