European Stocks Rise

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European stocks ended higher Thursday as upbeat corporate news offset a series of weak U.S. data releases and concerns about Spain.

The Stoxx Europe 600 index closed up 1.1% at 261.86. France's CAC-40 ended up 0.9% at 3263.64, and Germany's DAX ended up 1.1% at 6758.39. The U.K.'s FTSE 100 underperformed its peers slightly after soggy retail-sales figures for June, closing up a more modest 0.5% at 5714.19.

Meanwhile, Italy's FTSE Mib ended up 0.5% at 13,666.49 and Greece's ASE Composite closed up 1.4% at 622.26. Spain's benchmark IBEX-35 closed up 0.6% at 6632.60; Spain's agreement to secure €100 billion in bailout funds for its banks from the E.U. is expected to be signed Friday.

Investors were bombarded with mixed signals Thursday, with good corporate news in the U.S. and Europe on one hand, and a slew of downbeat U.S. data on the other. U.S. initial jobless claims for last week, existing home sales data for June and the Philadelphia Fed index for July all missed expectations. Ultimately, though, the good news won out thanks to a strong showing in the technology sector.

Nokia rose following the release of its second-quarter results. Although the company's net loss for the quarter nearly quadrupled from a year earlier and concerns remain about its challenging outlook, investors were encouraged by better-than-expected sales of its Lumia handset and the improved cash position. Well-received second-quarter earnings from U.S. bellwethers International Business Machines, Intel and Qualcomm also helped to push the Stoxx Europe 600 technology index up 2.6%.

Chemical stocks also gained, with the Stoxx Europe 600 index for the sector up 1.7% after second-quarter earnings from specialty chemicals and paints company Akzo Nobel pleased investors.

Swedish engineering firm Sandvik gained after posting better-than-expected second-quarter earnings, although it warned that economic uncertainty has increased, particularly in Europe.

News that the European Financial Stability Facility plans to set aside funds to buy Spanish bond added to the positive tone.

Meanwhile, second-quarter results from Morgan Stanley and Verizon Communications came and went without causing much of a stir in European markets, although the absence of any dividend talk at Verizon Wireless weighed on Vodafone shares, which ended down. Vodafone owns a 45% stake in joint-venture Verizon Wireless.

A poor Spanish auction that suggested Spain might be losing market access hit the euro, however, and by the time of the European markets' close, the single currency was fetching $1.2255 from $1.2284 late Wednesday in New York. Spain was forced to pay sharply higher borrowing costs in its short-term bond auction, and demand was sluggish overall, prompting fears that it may eventually require a full-blown sovereign bailout.

Among commodities, light, sweet crude for August delivery was up $2.05 at $91.92 on the New York Mercantile exchange, while Comex Gold for August delivery was up $16.50 at $1587.30, climbing for the seventh straight session.

Write to Michele Maatouk at Michele.Maatouk@dowjones.com