European stocks rebounded from a one-month low and Standard & Poor's 500 Index futures rose before the Federal Reserve reviews its record stimulus. Turkey's lira and India's rupee strengthened amid a rebound in emerging-market currencies and Italian bonds advanced. The Stoxx Europe 600 Index gained 0.7 per cent at 6 am in New York as contracts on the S&P 500 Index increased 0.5 per cent. Treasuries declined for a second day. The lira and the rupee both rose 0.7 per cent per dollar. Corporate bond risk fell in Europe by the most in seven months. US natural gas gained 3.3 per cent and rubber futures entered a bear market. The Federal Reserve will probably keep scaling back bond buying at a two-day meeting which started on Tuesday. "The correction we had in the past few days was more of a self-regulation from the market," said Didier Duret , who helps manage about $228 billion as chief investment officer at ABN Amro Private Banking in Amsterdam . "The downturn is not a long- term trend and fundamental sentiment hasn't changed." Three shares advanced for every one that declined in the Stoxx 600, with trading volumes 8.7 per cent higher than the 30-day average. The gauge completed its biggest three-day drop since June yesterday, falling 4.2 per cent in the period to the lowest close since December 20 . The Euro Stoxx 50 Index, tracking the biggest euro-area companies dropped for a sixth day yesterday, the longest streak since November 2011 . Software AG jumped 7.1 per cent after Germany's second- biggest software maker reporting quarterly earnings. F&C Asset Management climbed four per cent after Bank of Montreal bought the manager of the oldest UK investment fund for £708 million ( $1.2 billion ). Apple suppliers ARM Holdings and Dialog Semiconductor each fell at least 1.3 per cent. The company also said quarterly revenue may decline for the first time since 2003. Swedbank AB declined 2.9 per cent after the Stockholm -based lender reported net income that fell, missing analysts' projections. S&P 500 futures expiring in March rose after the index fell to its lowest level since December 17 . Texas Industries Inc. may move after agreeing to a sale to Martin Marietta Materials Inc , the US's second-largest producer of sand, gravel and crushed rock used in construction. The Fed will begin its final monetary policy meeting under Chairman Ben S. Bernanke , who leaves his post on January 31 . The central bank will probably reduce its monthly bond purchases in $10 billion increments over the next six meetings before announcing an end to the programme no later than December, according to a Bloomberg survey this month. The MSCI Emerging Markets Index rose from a four-month low, advancing 0.5 per cent, and a Bloomberg gauge tracking 20 developing-nation currencies advanced 0.3 per cent. The rupee rebounded from a two-month low as RBI Governor Raghuram Rajan boosted the repurchase rate to 8 per cent from 7.75 per cent. Only three of 45 analysts in a Bloomberg News survey predicted the move, with the rest expecting no change. Turkey's lira gained for a second day and the benchmark equity index climbed 0.7 per cent. The market wants to see the Turkish central bank raise rates, according to Turker Hamzaoglu , chief emerging-markets economist at Bank of America Corp in London . The yield on US 10-year Treasuries climbed three basis points to 2.77 per cent, after also adding three basis points on Monday. The yield on similar-maturity German bunds increased three basis points to 1.69 per cent. Italy's bonds climbed, with the 10-year yield slipping four basis points to 3.85 per cent.
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