European Shares Advance as Commodities Recover

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.

Source: Bloomberg

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Asian Stocks Drop Before BOJ, Fed as Commodities Shares Retreat

Asian stocks fell for a third day as raw-materials shares declined and Tokyo equities slumped before this week’s central-bank meetings in the U.S. and Japan.

The MSCI Asia Pacific Index slipped 0.3 percent to 132.41 as of 9:10 a.m. in Tokyo. While the Federal Reserve is expected to refrain from raising borrowing costs on Wednesday, investors will be on the lookout for any shifts in its guidance on the likely trajectory of increases. The Bank of Japan’s meeting concludes the following day and most economists predict monetary stimulus will be stepped up in Asia’s second-biggest economy.

Japan’s Topix index lost 0.6 percent as the yen traded at 111.04 per dollar. The currency rebounded 0.5 percent on Monday after falling the most since October 2014 on Friday.

Australia’s S&P/ASX 200 Index was little changed while New Zealand’s S&P/NZX 50 Index slipped 0.2 percent. Both markets resumed trading after Monday’s holiday.

Source : Bloomberg