European shares rebounded from their biggest decline in two weeks as crude and commodity prices recovered, and investors shrugged off concerns that a Federal Reserve rate increase as early as June will derail the U.S. economic recovery.
A measure of mining-related companies posted the biggest advance of the 19 industry groups on the Stoxx Europe 600 Index as metals jumped. Energy shares also gained as oil headed for its second weekly gain.
The Stoxx 600 climbed 1 percent to 337.39 at 8:19 a.m. in London, heading for a weekly gain of 0.8 percent. Shares slid yesterday as commodities tumbled and minutes from the Fed’s last meeting showed officials are ready to raise interest rates next month if the economic pickup stays supportive.
A European stock rally from a February low has faltered since reaching a three-month high in April amid concerns about global-growth prospects, mixed earnings reports and the efficacy of central bank policies. While gains in banks pushed the Stoxx 600 to its highest level since May 2 on Wednesday, the gauge has still gone a month without posting a daily gain of at least 1 percent. It’s down 3.7 percent since its recent peak.
Among stocks moving on corporate news, Ladbrokes Plc jumped 7 percent after the U.K.’s competition watchdog said the company and rival Coral Group may have to sell as many as 400 shops to get approval of a merger that would create the Britain’s biggest betting-shop chain.