Stocks in Europe rebounded from the biggest drop in four months, the euro rose and Irish bonds gained as government officials negotiated aid for the nation. U.S. stocks fluctuated. The Stoxx Europe 600 Index advanced 0.5 percent at 10:36 a.m. in New York. The euro climbed 0.4 percent to $1.3544. Irish bonds rose, driving yields down seven basis points to 8.17 percent. The Standard & Poor’s 500 Index rallied 0.3 percent as Target Corp., the second-largest U.S. discount retailer, beat profit estimates. Oil erased a 1.4 percent loss after the government said American stockpiles declined. The European Union and International Monetary Fund will start scanning the books of Ireland’s banks tomorrow in a prelude to a possible aid package to stem Europe’s widening fiscal crisis. U.S. government reports showed today that the increase in consumer prices and housing starts trailed economist forecasts, bolstering the Federal Reserve’s case that it needs to buy Treasuries to spur growth. “It’s a bit of a relief bounce,” said Quincy Krosby, chief market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees $690 billion. “Investors are realizing that there will be a solution for the Irish situation that won’t end up in global contagion.” Seventh Day Global stocks plunged for a seventh day yesterday, the longest streak since January, and commodities slid amid concern that the debt crisis in Ireland and Greece is worsening and that China will act to slow its economy. U.S. Treasuries snapped a two-day plunge and the dollar rallied. That concern eased today, with the yield premium for Irish 10-year bonds narrowing to 557 basis points more than Germany debt with a similar maturity, from 561 points yesterday. Finance chiefs from the 16-country euro area said the joint assessment will determine whether Ireland can fix the banking system on its own or needs to fall back on the EU-IMF 750 billion-euro ($1 trillion) rescue fund. Actelion Ltd. led health-care stocks in the Stoxx Europe 600 Index higher after Amgen Inc. was said to be considering a takeover offer. Roche Holding AG advanced 1.2 percent as the drugmaker announced a cost-reduction program. Thales SA paced declining shares after UBS AG downgraded Europe’s biggest maker of defense electronics. To contact the reporters on this story: Nick Baker in New York at nbaker7@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net. To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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