European stocks rose, rebounding from their longest streak of weekly losses in 14 months, as investors awaited this week's Federal Reserve meeting for signs on the pace of stimulus reduction.

The Stoxx Europe 600 Index rose 0.8 percent to 293.31 at 4:30 p.m. in London, for the first back-to-back gains this month. The gauge fell 1.5 percent last week and has lost 5.6 percent since May 22 when Federal Reserve Chairman Ben S. Bernanke said the central bank could pare quantitative easing if the U.S. economy improves sustainably.

The Federal Open Market Committee will hold its policy meeting tomorrow and the day after, with Bernanke explaining his stance after the decision on June 19. At stake is the Fed's monthly purchase of $85 billion of Treasuries and mortgage securities and the target rate for overnight lending between banks, which has been kept at almost zero since December 2008.

A report showed that manufacturing in the New York, northern New Jersey and southern Connecticut region unexpectedly increased this month. The Fed Bank of New York's general economic index rose to 7.84 in June, from minus 1.4 in May. Economists had predicted a reading of zero, the dividing line between expansion and contraction.

National benchmark indexes climbed in 14 of the 17 western European markets trading today.

FTSE 100 6,330.49 +22.23 +0.35% CAC 40 3,863.66 +58.50 +1.54% DAX 8,215.73 +87.77 +1.08%

Telefonica SA advanced 2.3 percent to 10.26 euros as El Mundo reported that Spain blocked AT&T Inc.'s takeover bid for the company because Telefonica is "strategic" to Spain's economy. Spokeswoman Marisa Navas said the company didn't receive any formal or informal approach from AT&T.

Belgacom SA rose 1.9 percent to 17.54 euros. Exane BNP Paribas raised its rating of Belgium's largest telephone company to neutral from underperform. Belgacom's Scarlet brand last week introduced an 8 euro-per-month mobile-service plan.

ABB rose 2.6 percent to 20.71 francs after the company named as CEO Ulrich Spiesshofer, who oversaw the company's $1 billion deal to buy California-based Power-One Inc. He will take over after Joe Hogan steps down on Sept. 15.

Saipem plunged 29 percent to 14.24 euros, for the worst performance on the Stoxx 600. Italy's largest oil-and-gas engineering company cut its forecast for earnings before interest and tax this year by 650 million euros to 750 million euros. The company now expects a net loss of 300 million euros to 350 million euros.

Imagination Technologies Group Plc fell 3.5 percent to 304.4 pence as Barclays Plc cut the U.K. designer of chip technology for phones and tablets to equal weight, the equivalent of hold, from overweight. Barclays cited pressure on smartphone prices.

U.S. stock futures advanced as investors awaited this week's Federal Reserve monetary policy meeting.

Global Stocks:

Nikkei 13,033.12 +346.60 +2.73%

Hang Seng 21,225.9 +256.76 +1.22%

Shanghai Composite 2,156.21 -5.83 -0.27%

FTSE 6,346.05 +37.79 +0.60%

CAC 3,863.42 +58.26 +1.53%

DAX 8,234.15 +106.19 +1.31%

Crude oil $98.08 +0.23%

Gold $1383.60 -0.29%

Upgrades:

Downgrades:

Chevron (CVX) downgraded from Buy to Hold at Jefferies

Other:

European stocks advanced, after the Stoxx Europe 600 Index posted its longest streak of weekly losses in 14 months, as investors awaited signals from the Federal Reserve on stimulus measures. U.S. index futures and Asian shares also rose.

The Fed will hold its two-day policy meeting this week, with Bernanke explaining his stance after the central bank's decision on June 19. The Fed is buying $85 billion of Treasuries and mortgage securities a month to spur the economy, and has kept the target for overnight lending between banks at almost zero since December 2008.

Group of Eight leaders gather for a two-day summit in Northern Ireland today with trade near the top of the agenda. European leaders seeking a path to economic growth while curbing their debt will focus on the benefits of a trade agreement with the U.S. after the European Union authorized the start of talks.

Telefonica SA advanced 2.9 percent to 10.33 euros as El Mundo reported that Spain blocked AT&T Inc.'s takeover bid for the company because the Telefonica is "strategic" to Spain's economy. Spokeswoman Marisa Navas said the company didn't receive any formal or informal bid, indication or approach by AT&T.

ABB rose 1.4 percent to 20.47 Swiss francs after the company named Ulrich Spiesshofer, who has earlier overhauled the company's robotics division, as CEO. He will take over after Joe Hogan steps down on Sept. 15.

Imagination Technologies Group Plc fell 2.2 percent to 308.4 pence as Barclays Plc cut the U.K. designer of chip technology for phones and tablets to equal weight, the equivalent of hold, from overweight.

FTSE 100 6,358.99 +50.73 +0.80%

CAC 40 3,872.29 +67.13 +1.76%

DAX 8,240.46 +112.50 +1.38%

Asian stocks rose, with the regional benchmark index heading for its biggest two-day advance since September, as investors await this week's Federal Reserve meeting.

Nikkei 225 13,033.12 +346.60 +2.73%

Hang Seng 21,256.75 +287.61 +1.37%

S&P/ASX 200 4,825.9 +34.14 +0.71%

Shanghai Composite 2,160.26 -1.78 -0.08%

Japan's Topix Index jumped after falling the past four weeks.

GCL-Poly Energy Holdings Ltd., the largest maker of materials used in solar panels, increased 6.6 percent in Hong Kong on optimism China will boost domestic demand for solar-generated electricity.

Chiyoda Corp., a builder of industrial facilities, gained 8 percent in Tokyo after Bank of America's Merrill Lynch raised its rating to buy.

Nomura Real Estate Office Fund Inc., partly-owned by Japan's No. 1 brokerage, slumped 12 percent after announcing a share sale.