European stocks fell from a two-week high after minutes from the Federal Reserve’s last meeting showed officials want to raise interest rates next month if the economic pickup stays supportive.
The Stoxx Europe 600 Index lost 0.4 percent at 8:13 a.m. in London, with commodity producers declining the most. Fresnillo Plc and Anglo American Plc slipped more than 4 percent, following metal prices lower. Europe’s benchmark climbed with banks yesterday, after closing little changed for the previous two sessions.
Fed officials used the word “June” six times in a policy context, minutes from the April meeting showed late yesterday, following speeches by regional Fed bank presidents warning investors not to dismiss a mid-year hike. Traders are now pricing in a 32 percent probability of higher borrowing costs next month, from just 4 percent on Monday. The first month with at least even odds for a rise has been brought forward to September, from as late as February 2017 a week ago.