European stocks advanced, tracking gains for most Asian equities as global markets steadied in the wake of Monday’s Turkey-induced turmoil. The dollar slipped from its highest in 14 months and Treasuries edged lower.
The Stoxx Europe 600 Index rallied with banks among the top performers, while the euro edged higher and the region’s peripheral debt rebounded as a degree of calm returned to Turkish markets. The lira rose, and the country’s benchmark equity index climbed even as a diplomatic standoff between Turkey and the U.S. dragged on.
The Stoxx Europe 600 Index advanced 0.4 percent, the biggest gain in a week. The Bloomberg Dollar Spot Index sank 0.3 percent, the largest decrease in almost three weeks.