Optimism returned to European equities before this week's Federal Reserve decision on interest rates. The Stoxx 600 Europe Index added 0.4 percent at 9:19 a.m. in London, climbing as much as 0.9 percent. The volume of shares changing hands was 26 percent lower than the 30-day average. The benchmark equity gauge advanced 0.7 percent last week, paring gains in the last two days as investors shifted their focus from China to the timing of the Fed's first interest-rate hike since 2006. Less than 30 percent of traders are pricing in a raise on Sept. 17. "When the Fed is in doubt, it's willing to wait," said Peter Garnry, Saxo Bank A/S's head of equity strategy in Hellerup, Denmark. "They're really nervous about making a policy mistake, so we're looking for a December hike. It seems that the concerns about growth in China may have found a bottom." A measure tracking volatility expectations on European equities fell 3 percent, following its first weekly decline in five. While the Stoxx 600 fell 14 percent from its record in April through the end of last week, strategists remain confident the index will rebound and post its best year since 2009. They forecast the gauge will climb about 18 percent in 2015, outperforming U.S. equities and recovering all ground lost after China devalued the yuan in August. Among stocks moving on corporate news, Societe Television Francaise 1 rallied 6.8 percent as Le Journal du Dimanche reported that the French government won't reintroduce evening advertising on state-owned television. Kepler Cheuvreux recommended buying the stock. Source: Bloomberg
