European stocks rebounded from a two-month low, following the worst weekly selloff since August, as investors awaited the Federal Reserve’s impending rate decision.
Equities are rising for the first time in five days, with traders pricing in a 74 percent chance that Fed officials will announce a rate increase on Wednesday. The Stoxx Europe 600 Index advanced 0.6 percent at 8:19 a.m. in London, as all 19 industry groups rose.
The Stoxx 600 has still fallen 7.1 percent this month through Friday amid a rout in commodities and disappointment over the extent of European stimulus, defying a seasonal trend that has yielded gains in five of the past six Decembers.
Among stocks active on corporate news, Telecom Italia SpA rose 3.4 percent after Vivendi SA decided to abstain from voting on a plan to convert the Italian company’s savings shares into ordinary shares at tomorrow’s meeting of stock holders.
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