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By Bloomberg

Stocks in Europe climbed to a three-week high after a European Central Bank official said it plans to increase bond buying in May and June.

The Stoxx Europe 600 Index added 1.5 percent to 404.24 at 8:35 a.m. in London for a second day of gains. Auto shares led the advance, with Volkswagen AG and Renault SA rising at least 2.6 percent after a report showed European car sales rose 6.9 percent last month for the 20th straight increase.

The ECB intends to buy more euro-area assets ahead of an expected period of low liquidity in the summer, according to the text of a speech by Executive Board member Benoit Coeure in London. The central bank’s quantitative-easing measures helped send the Stoxx 600 up as much as 21 percent to an April peak this year.

Greece’s ASE Index climbed 1.7 percent, extending Monday’s gains. Finance Minister Yanis Varoufakis said in an interview with Star TV Channel that his government is “very close” to an agreement to unlock more aid from creditors. He gave a timeframe of one week to reach it.

Investors are also watching U.S. economic reports for clues on the strength of the recovery and the timing of a rate increase. A release at 8:30 a.m. in Washington may show U.S. housing starts rose at a 9.6 percent annual pace in April, from a 2 percent rate the previous month. Applications for new-home construction gained 2.1 percent, after declining in March, economists forecast.

Earnings Reports

Among shares active on corporate news, Julius Baer Group Ltd. rose 1.6 percent after saying market volatility helped increase revenue from managing clients’ money, boosting margins this year. DCC Plc rallied 10 percent after posting an increase in annual profit and offering to buy Butagaz for 464 million euros ($520 million).

South32 Ltd., the miner spun off from BHP Billiton Ltd., jumped 7.9 percent in London. It missed analyst estimates on its Sydney trading debut yesterday.

Vodafone Group Plc declined 2.4 percent after the lower end of its forecast for 2016 profit missed the average analyst projection. Merck KGaA slipped 1.7 percent after the drugmaker reported first-quarter earnings that trailed estimates.

Aveva Group Plc fell 3.8 percent after its chief executive officer told CNBC his company is not in takeover talks. The stock rose 9 percent on Monday amid deal speculation.

Spain’s market regulator suspended shares of Distribuidora Internacional de Alimentacion SA until 10 a.m. in Madrid. Investors offered to sell an 8.5 percent stake in the Spanish retailer.