European stocks rebound after three days of declines

On Tuesday European stocks advanced, rebounding after three days of declines amid a series of market reversals. Gold headed for the first drop in four days, while the dollar swung before climbing as investors await Wednesday’s U.S. interest rate decision.

Most industry sectors rose as the Stoxx Europe 600 Index increased, with banks leading the way as government bond yields in the region climbed. Emerging-market equities fell, taking a breather after gaining in 10 of the past 11 days. The greenback strengthened with the euro, which flirted once again with its highest level in two years after German business confidence data beat expectations. Saudi Arabia’s promise to further cut crude exports spurred oil toward a second day advancing.

Markets this week are moving to the ebbs and flows of company- and industry-specific forces as investors brace for the Fed decision, when the central bank will weigh robust global growth against feeble inflation and mixed U.S. economic data. Expectations are for policy makers to keep rates on hold; clues to the fate of its balance sheet will be key.

The Stoxx Europe 600 Index jumped 0.7 percent. The MSCI All-Country World Index rose 0.1 percent. Germany’s DAX Index gained 0.5 percent, the biggest rise in almost two weeks. The MSCI Emerging Market Index dipped 0.3 percent, the largest decrease in more than two weeks. Futures on the S&P 500 Index added 0.1 percent after the underlying gauge slipped 0.1 percent on Monday.

Gold dipped 0.3 percent to $1,251.05 an ounce, the largest decrease in more than two weeks. West Texas Intermediate crude rose 1.5 percent to $47.04 a barrel.

Japan’s Topix index lost 0.3 percent. Australia’s S&P/ASX 200 Index added 0.7 percent. South Korea’s Kospi index retreated 0.5 percent. The Hang Seng Index was little changed while the Shanghai Composite Index slipped 0.2 percent.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.