European Stocks Advance; BHP Billiton, Total Pace the Gains

European stocks climbed, led by mining and energy companies, after metal prices rallied and oil rose to a record.

BHP Billiton Ltd., the world's largest mining company, and Total SA, Europe's biggest oil refiner, advanced. Volkswagen AG led carmakers higher after Goldman, Sachs & Co. lifted its price estimate on the company. Pharmaceutical stocks paced declining shares.

The Dow Jones Stoxx 600 Index added 0.6 percent to 386.31 at 2:04 p.m. in London. The Stoxx 50 and the Euro Stoxx 50, a measure for the euro region, also climbed 0.6 percent.

``We're playing the raw-materials theme in a significant way and it's paying off,'' said Emmanuel Soupre, who helps manage more than $33 billion at Neuflize Gestion in Paris. ``There's no reason for a drop in prices. Demand in Asia is furious and it has to be met.''

Treasuries fell as traders pared bets that the Federal Reserve will reduce interest rates by more than a quarter percentage point this week. The dollar sank to a record low against the euro, while the risk of owning European corporate bonds declined, according to traders of credit-default swaps.

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