European stocks fell, dragging the Stoxx Europe 600 Index from a 17-month high, as U.S. consumer spending unexpectedly declined and American lawmakers continued to negotiate a deal on the federal budget.
U.S. stocks rose, sending the Standard & Poor’s 500 Index to an almost two-month high, as investors weighed prospects for a budget deal in Washington. The yen fell to 20-month low as the Liberal Democratic Party returned to power on calls for more monetary easing.
European stocks fell, even as the Stoxx Europe 600 Index completed its second straight monthly rally, after companies including BP Plc and UBS AG posted earnings that missed forecasts and investors awaited the outcome of a two-day Federal Reserve meeting.
European stocks climbed, halting a four-day decline for the benchmark Stoxx Europe 600 Index, as yields on benchmark Spanish bonds slipped amid speculation that the country’s government will soon ask for a bailout.