European stocks rose for a third day, extending a 17-month high, as personal and household goods companies advanced.

Greek Prime Minister George Papandreou set a one-week deadline for the European Union to craft a financial aid mechanism for Greece, challenging Germany to give up its doubts about a rescue package.

U.S. stocks fluctuated as a drop in jobless claims and no change in consumer prices added to evidence the economy is recovering without stoking inflation, while FedEx Corp. slid on earnings that disappointed investors.