Europe stocks erase gains after oil talks, yen rebounds
European stocks erased gains and oil trimmed its advance as energy ministers from Saudi Arabia and Russia ended talks on crude output. The yen rebounded.
Shares in Europe were little changed after Qatar Energy Minister Mohammad bin Saleh al-Sada said the ministers agreed to freeze production. Chinese shares rallied the most in three months as data showed new credit surged to a record in January. Standard & Poor's 500 Index futures climbed 1.6 percent, while U.S. Treasuries led declines in government bonds as trading resumed after a holiday on Monday. The yen and euro strengthened.
Crude'smore than 40 percent slide over the past year has restrained growth in oil-rich emerging countries and heightened sensitivity to any sign of willingness by Saudi Arabia, the de facto OPEC leader, to discuss coordinated production cuts. China's lending data followed an expression of confidence in the economy from central bank Governor Zhou Xiaochuan over the weekend and reassurances from European Central Bank President Mario Draghi on Monday that policy makers will act if financial turmoil threatens price stability.
"Markets need more than just a freeze in oil production, they need a cut," said Ralf Zimmermann, a strategist at Bankhaus Lampe in Dusseldorf. "We've enjoyed a tactical rebound but most of the risk is still on the downside. People are looking at policy makers, be it central banks or OPEC, for more reassurance because everything boils down to what will happen to global growth."
The Stoxx Europe 600 Index slipped 0.2 percent at 9:52 a.m. in London, after climbing as much as 0.8 percent. The Shanghai Composite Index advanced 3.3 percent. Brent for April settlement advanced 1.7 percent to $33.94 a barrel, paring a 6.5 percent gain.