Stocks rally following three days of losses

On Tuesday European stocks joined a rally across most Asian equities following three days of losses, though trading volumes were once again depressed. Havens including gold, the yen and bonds retreated even as the likes of Bridgewater Associates’ Ray Dalio said he was reducing risk.

The Stoxx Europe 600 Index rebounded from the lowest in more than a week as miners and chemical makers led gains across almost every sector. U.S. equity-index futures were also in the green after the S&P 500 Index halted a two-day decline on Monday.

Investors seem to be getting over some of the sensitivity that characterized the past few days following political turmoil in Washington, fresh terrorist attacks in Europe and ongoing tension between the U.S. and North Korea. Nonetheless Dalio, the billionaire founder of the world’s largest hedge fund, said he’s “tactically reducing” risk because he’s concerned about growing internal and external conflict “leading to impaired government efficiency” in the U.S., according to a LinkedIn post Monday.

With little in the way of top-tier economic data out this week, markets are set to focus next on the annual conference of global central bankers hosted by the Kansas City Federal Reserve Bank at Jackson Hole, Wyoming. It starts on Thursday.

The Stoxx Europe 600 Index increased 0.5 percent as of 11:09 a.m. in London. The U.K.’s FTSE 100 Index jumped 0.7 percent, the biggest increase in almost three weeks on a closing basis. Germany’s DAX Index gained 0.7 percent. Futures on the S&P 500 Index jumped 0.2 percent, the biggest increase in more than a week.

Japan’s Topix index fluctuated before ending the local session less than 0.1 percent higher, while the Kospi index gained 0.4 percent as did Australia’s main gauge. The Japanese yen fell 0.3 percent to 109.29 per dollar.

West Texas Intermediate crude climbed 0.3 percent to $47.51 a barrel. Gold fell 0.5 percent to $1,285.18 an ounce, the largest fall in a week.