U.S. stocks rose for the first time in three days and Treasuries advanced on speculation the Federal Reserve won’t rush to raise rates amid uncertainty over Greece’s future in the euro. European equities rebounded from a four-month low.
The Standard & Poor’s 500 Index climbed 0.6 percent at 4 p.m. in New York, rising above its average price for the past 100 days. The Stoxx Europe 600 Index gained 0.6 percent after reversing a 1.1 percent loss. The euro weakened 0.5 percent to $1.1232. The yield on 10-year Treasury notes fell four basis points to 2.31 percent, while German bund rates slipped to 0.80 percent. Gold settled 0.4 percent lower.
The Federal Reserve started a two-day policy meeting, with investors speculating interest rates will remain unchanged and fed fund futures assigning a reduced probability for an increase in September. While Greece ratcheted up rhetoric against its creditors, German Chancellor Angela Merkel struck a more conciliatory tone, saying she was counting on a June 18 meeting of euro-area finance ministers to end the standoff.