European Stocks Advance as Investors Weigh Fed Policy

European stocks rose to a one-week high, rebounding from their longest streak of weekly losses in 14 months, as investors awaited this week’s Federal Reserve meeting for signs on the pace of stimulus reduction.

Telefonica SA, Europe’s most indebted telephone company, climbed 2.4 percent after a report that AT&T Inc. had been keen to acquire the company. ABB Ltd. advanced 2.6 percent after the world’s largest supplier of power grids named a new chief executive officer. Saipem SpA plunged to a four-year low after cutting its 2013 guidance for the second time in six months.