European stocks increased on the optimism across the euro-zone as Italy adopted austerity measures and investors are inspired by the meeting of leaders of Germany and France. The Stoxx Europe 600 added 0.7% to 242.47 in the early trade. Financial shares also gained; KBC Group NV added 9.3% in Brussels, Lloyds Banking Group PLC increased by 6.3%, Banco Espirito Santo SA rallied 4.9%.