Stoxx Europe 600 Index heads for first increase in eight days

On Wednesday the Stoxx Europe 600 Index headed for the first increase in eight days as most sectors on the gauge rose. Earlier in Asia, Japan’s benchmarks eked out slim gains at the close after retreating from the session’s highs, while Chinese shares dropped. The dollar was flat as commodities rallied.

The rebound in stock prices spread to Europe, but markets remained on edge as Asian equities pared their advance while U.S. futures retreated. Treasuries rebounded after Tuesday’s slump, gold climbed and crude gave up gains.

Markets from Europe to Japan tumbled into oversold territory after the rout of the past week, which was triggered by rising bond yields and the prospects for a return of inflation and subsequent tighter monetary policy. Amid a slew of calls to “buy the dip,” investors will be watching Wednesday’s auction of 10-year Treasuries for clues on where markets go from here.

The Stoxx Europe 600 Index climbed 0.7 percent as of 9:55 a.m. London time, the first advance in more than a week and the largest increase in more than a month. Futures on the S&P 500 Index sank 1 percent. The MSCI Asia Pacific Index climbed 0.1 percent. The U.K.’s FTSE 100 Index increased 0.4 percent, the first advance in more than a week. The MSCI Emerging Market Index advanced 0.1 percent, the first advance in a week.

Oil gave up earlier gains and Bitcoin edged higher, nearing $8,000. West Texas Intermediate crude fell 0.3 percent to $63.21 a barrel, the lowest in more than four weeks. Gold climbed 0.4 percent to $1,329.27 an ounce.

The euro declined 0.2 percent to $1.2352, the weakest in more than two weeks. The British pound dipped 0.1 percent to $1.393, the weakest in almost three weeks. The Japanese yen gained 0.5 percent to 109.04 per dollar, the strongest in more than a week.