European mining and technology stocks rose after a report showed consumer spending in the U.S. increased more than forecast last month.

Rio Tinto Group, the world’s third-biggest mining company, and Infineon Technologies AG, Europe’s second-largest semiconductor maker, paced the advance. Tate & Lyle Plc led food and beverage makers lower after predicting a loss for its sugar- trading division and saying higher corn prices will dent profit.

The Dow Jones Stoxx 600 Index added 0.1 percent to 378.25 as of 3 p.m. in London. The index has lost 4 percent since June 29, rebounding from a decline of as much as 11 percent, as an interest- rate cut and earnings from investment banks in the U.S. eased concern the turmoil in the subprime mortgage markets will spread.

“Today’s data shows that the U.S. consumer held up against the turmoil in financial markets,” said Carsten Klude, who helps manage $20 billion as head of investment strategies at M.M. Warburg & Co. in Hamburg. “It has been a good mix. Not too weak, so there’s no need to fear a recession, and not too strong, so an end of interest rate cuts is not in sight.”

The Commerce Department said spending rose 0.6 percent and the Federal Reserve’s preferred measure of inflation cooled. The data signaled the fallout from a weaker job market and collapse in subprime lending had yet to reach the biggest part of the economy.

National Markets

National benchmarks gained in 10 of the 18 western European markets. Germany’s DAX added 0.2 percent. France’s CAC 40 lost 0.1 percent, as did the U.K.’s FTSE 100. The Stoxx 50 rose 0.2 percent, and the Euro Stoxx 50, a measure for the euro region, advanced 0.1 percent.

Rio Tinto added 2 percent to 4,240 pence, and Anglo American Plc, the world’s second-biggest mining company, rose 1.2 percent to 3,290 pence.

Copper rose in London, heading for a third quarter of gains. Aluminum and zinc also advanced.

Infineon advanced 2 percent to 12 euros. Siemens AG, Europe’s largest engineering company, gained 1.4 percent to 97.61 euros.

“The better-than-expected data has naturally boosted sentiment,” said Richard Scott, who helps oversee about $1 billion at Iimia Investment Group in Exeter, England. “One of the main worries for investors has been the risk that the ailing U.S. housing market would hit U.S. consumer spending.”

Tate & Lyle, Northern Rock

Tate & Lyle plunged 29 percent after the U.K. sugar producer said the weaker U.S. currency is likely to reduce earnings, the biggest decline since at least 1988. The shares tumbled 162.5 pence to 395. The company expects its sugar unit to report a “small” loss in the first half, while the decline in the dollar is likely to result in a drop in second-half pretax profit.

“The board views the near-term outlook with caution,” the company said in a statement distributed by Business Wire.

Northern Rock Plc fell 5.5 percent to 182.8 pence on speculation that it accounted for most of the 7.75 billion-pound ($15.7 billion) increase in loans granted by the Bank of England to financial companies in the past two weeks.

“The likelihood is that most of the increase has been to Northern Rock,” New Star Asset Management Group Plc analyst Simon Ward said in an interview.

A Bank of England spokeswoman declined to comment.

“We obviously have the facility in place but we are not commenting on our drawdown or repayment of the facility,” said Northern Rock spokesman Brian Giles.

Alcatel-Lucent

Alcatel-Lucent SA added 4.8 percent to 7.23 euros on plans to speed up integration of the company.

Chief Executive Officer Patricia Russo has been given until Oct. 30 to present an emergency restructuring plan to the board and to explain where the world’s biggest provider of telecommunications equipment should focus its future research and sales efforts, the Financial Times reported, citing an unidentified person close to the company’s board.

“The company has been working on integration plans and has been looking at ways to accelerate those plans in light of the Sept. 13 announcement,” Alcatel-Lucent said in an e-mailed statement in response to questions about the newspaper report.

Bayerische Motoren Werke AG declined 1.7 percent to 45.18 euros after UBS AG cut its recommendation on the shares to “neutral” from “buy,” citing concern the carmaker faces the risk of slowing demand in some of its key markets.

Merck KGaA slid 5.2 percent to 85.34 euros, the steepest drop in more than a year, after Deutsche Bank AG downgraded Europe’s largest biotechnology company.

Deutsche Bank analyst Holger Blum cut his recommendation on the shares to “hold” from “buy” and reduced the price estimate to 91 euros from 96 euros, saying earnings expectations are too high for liquid crystals, chemicals used in flat-panel televisions. The company’s liquid-crystals unit brings in more than 40 percent of operating profit.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net

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