European stocks advance as Fed rate decision looms

European stocks advanced, rebounding after three days of declines amid a series of market reversals. Gold headed for the first drop in four days, while the dollar swung before climbing as investors await Wednesday’s US interest rate decision.

Most industry sectors rose as the Stoxx Europe 600 Index increased, with banks leading the way.

Emerging-market equities fell, taking a breather after gaining in 10 of the past 11 days. The greenback strengthened with the euro, which flirted once again with its highest level in two years after German business confidence data beat expectations. Saudi Arabia’s promise to further cut crude exports spurred oil toward a second day advancing.

Markets this week are moving to the ebbs and flows of company and industry-specific forces as investors brace for the Fed decision, when the central bank will weigh robust global growth against feeble inflation and mixed US economic data.

Swiss chocolate maker forecasts slowing revenue growth

---

Connemara Mining discovers gold at Donegal site

---

Dollar near two-year lows against euro after Draghi comments

---

Dollar catches breath after plunging on collapse of US healthcare bill

---

Expectations are for policy makers to keep rates on hold; clues to the fate of its balance sheet will be key.

"Any major policy announcement is more likely when chair Janet Yellen faces the press following the September meeting," JandE Davy Holdings analyst David McNamara said. "For now the Fed remain on track for a couple more rate hikes at least this year, with most members believing the recent softness in inflation to be temporary."

In currencies The euro rose 0.1 per cent to $1.1656 and sterling fell 0.1 per cent to $1.3011.

– Bloomberg