European stocks erased gains, led by losses in miners amid concern China’s measures to contain its market turmoil are failing even as a Federal Reserve rate decision looms.
The Stoxx Europe 600 Index fell 0.3 percent at 9:18 a.m. in London, giving up an advance of as much as 0.5 percent. The volume of shares changing hands was 15 percent lower than the 30-day average, data compiled by Bloomberg show.
European shares tracked losses in Chinese shares, which slumped for a second day on concern that unprecedented state measures aren’t doing enough to support a failing economy. Stoxx 600 miners fell for a fourth day, down 2.7 percent as metal prices declined. Glencore Plc and Rio Tinto Group slipped at least 2.9 percent.
Stocks have been volatile in recent days, with investors reluctant to turn buyers before the Fed’s rate decision on Thursday. The Stoxx 600 fell 2.8 percent in the last three days. Traders are pricing in less than a one-in-three chance the central bank will act at this week’s meeting, from almost even odds before a China-fueled global market rout in August.
Electricite de France SA slipped 4.7 percent after Morgan Stanley downgraded the shares to underweight, similar to sell.
The Fed’s decision this week won’t calm market turbulence, and investors should get used to an era of increased volatility, according to Anthony Limbrick, whose hedge fund profited on bearish wagers during the August rout.