European stocks erased losses in the final minutes of trading as Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank should continue its bond-buying program.

The Stoxx Europe 600 Index rose less than 0.1 percent to 309.99 at the close, having earlier lost as much as 0.7 percent.

Bullard, speaking in Frankfurt as European equity markets closed, said the Fed should continue its bond purchases because markets indicate they are improving financial conditions. The program can be adjusted based on how the economy changes, said Bullard, who votes on the policy-setting Federal Open Market Committee this year. Fed Chairman Ben S. Bernanke will discuss the economic outlook in congressional testimony tomorrow, as the bank also publishes minutes of its last policy meeting.

National benchmark indexes increased in 11 of the 18 western European markets.

FTSE 100 6,803.87 +48.24 +0.71% CAC 40 4,036.18 +13.33 +0.33% DAX 8,472.2 +16.37 +0.19%

Marks & Spencer advanced 6.2 percent to 467.9 pence, the highest since January 2008. The U.K.'s biggest clothing retailer said it will reduce capital spending to 775 million pounds ($1.2 billion) this year and 550 million pounds next year.

Burberry jumped 5.3 percent to 1,541 pence, the highest since April 2012. The company reported full-year profit that beat estimates, boosted by strong demand in China and Hong Kong, and increased the dividend by more than analysts expected.

BHP Billiton Ltd., the world's biggest mining company, advanced 3 percent to 1,982 pence. Rio Tinto Group, the second-largest, climbed 2.6 percent to 2,979 pence. Polymetal International Plc, Russian gold and silver producer, jumped 8.4 percent to 669 pence for the biggest gain since the shares started trading in London in 2011.

Carnival dropped 5.9 percent to 2,267 pence in London after the cruise operator lowered its profit forecast for the second half of 2013, saying price cuts undertaken after a series of mishaps will hurt margins.

Sonova Holding AG, the world's largest maker of hearing aids, retreated 1,1 percent to 103.50 Swiss francs after saying profit growth will slow. Earnings before interest, taxes and acquisition-related amortization and impairments will rise by 9 percent to 13 percent in local currencies this fiscal year, compared with a 15 percent jump in the 12 months ended March, the company said.

U.S. stock futures were little changed as investors weighed the possibility that the Federal Reserve will scale back its stimulus program.

Global Stocks:

Nikkei 15,381.02 +20.21 +0.13%

Hang Seng 23,366.37 -126.66 -0.54%

Shanghai Composite 2,305.11 +5.13 +0.22%

FTSE 6,765.84 +10.21 +0.15%

CAC 4,014.97 -7.88 -0.20%

DAX 8,435.32 -20.51 -0.24%

Crude oil $96.26 -0.47%

Gold $1372.20 -0.86%

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Yahoo! (YHOO) reiterated at Outperform at Oppenheimer, target raised from $27 to $30

European stocks retreated from the highest level in almost five years as Carnival Corp. led travel companies lower after cutting its forecasts.

Carnival dropped 13 percent to 2,101 pence in London, the biggest decline since the Costa Concordia cruise ship ran aground off Italy in January 2012, killing 32 passengers. The cruise operator lowered its profit forecast for the second half of 2013, saying price cuts undertaken after a series of mishaps will hurt margins.

A gauge of auto companies was the worst performer among 19 industry groups in the Stoxx 600. Daimler slid 3 percent to 48.86 euros and Volkswagen AG declined 1.9 percent to 170.60 euros. Renault SA dropped 2.9 percent to 60.33 euros. The index had surged 14 percent this month before today.

Sonova Holding AG, the world's largest maker of hearing aids, retreated 3.5 percent to 100.90 Swiss francs after saying profit growth will slow. Earnings before interest, taxes and acquisition-related amortization and impairments will rise by 9 percent to 13 percent in local currencies this fiscal year, compared with a 15 percent jump in the 12 months ended March, the company said.

Marks & Spencer advanced 4.4 percent to 459.8 pence, the highest since January 2008. The U.K.'s biggest clothing retailer said it will reduce capital spending to 775 million pounds ($1.2 billion) this year and 550 million pounds next year.

FTSE 100 6,759.62 +3.99 +0.06%

CAC 40 3,998.75 -24.10 -0.60%

DAX 8,414.95 -40.88 -0.48%

Asia's benchmark stock index swung between gains and losses as Australian banks fell, Goldman Sachs Group Inc. sold a $1.1 billion stake in Industrial & Commercial Bank of China Ltd., and Tokyo Electric Power Co. surged.

Nikkei 225 15,381.02 +20.21 +0.13%

S&P/ASX 200 5,180.1 -28.93 -0.56%

Shanghai Composite 2,300.61 +0.62 +0.03%

ICBC, the world's largest lender by market value, sank 2 percent in Hong Kong.

Westpac Banking Corp. and Commonwealth Bank of Australia, the two biggest Australian lenders, each slid at least 1 percent as minutes of this month's central bank meeting highlighted concern about business conditions.

Change % Change Last

Nikkei 225 15,360.81 +222.69 +1.47%

S&P/ASX 200 5,209 +28.23 +0.54%

Shanghai Composite 2,299.2 +16.33 +0.72%

FTSE 100 6,755.63 +32.57 +0.48%

CAC 40 4,022.85 +21.58 +0.54%

DAX 8,455.83 +57.83 +0.69%

Dow -18.28 15,336.12 -0.12%

Nasdaq -2.54 3,496.43 -0.07%

S&P -1.19 1,666.28 -0.07%