European Stocks Erase Drop as Investors Await U.S. GDP

European stocks erased their decline, with the Stoxx Europe 600 Index heading for its best month since October 2011, as investors awaited a report on the pace of U.S. economic growth in the second quarter. U.S. futures were little changed, while Asian shares dropped.

Vinci SA (DG) slipped 1.9 percent after saying profit declined as poor weather hindered roadworks in Europe. Anheuser-Busch InBev NV jumped 6.9 percent after the maker of Stella Artois beer posted earnings that beat estimates. Invensys added 2.1 percent after Schneider Electric SA (SU) said it will buy the company for the equivalent of 502 pence a share.

The Stoxx Europe 600 Index rose less than 0.1 percent to 299.56 at 9:18 a.m. in London, erasing a drop of as much as 0.5 percent. The gauge has gained 5.1 percent in July as the Federal Reserve said it remains flexible on the pace of its bond-buying program. Standard & Poor's 500 Index futures climbed 0.1 percent today, while the MSCI Asia Pacific Index dropped 0.9 percent.

The Fed will reveal the outcome of its two-day meeting after European markets close today. The Fed will leave its benchmark interest rate at 0.25 percent, according to every economist in a Bloomberg survey. The central bank may begin to reduce its bond-purchase program in September, economists predicted in a separate survey.

The European Central Bank and the Bank of England announce policy decisions tomorrow.

U.S. Economy

A report at 8:30 a.m. in Washington may show the U.S. economy, the world's largest, grew at a 1 percent annual rate from April through June. It expanded at a 1.8 percent pace in the first three months of the year.

A separate release at 8:15 a.m. will show that companies in the U.S. hired a net 180,000 workers this month, economists projected. The ADP Research Institute's report showed that private employers increased their workforce by 188,000 in June.

Vinci lost 1.9 percent to 40.08 euros. Net income in the first six months of the year fell to 748 million euros ($994 million) and missed the 760.5 million-euro average estimate in a Bloomberg survey of analysts. Net income will decline less in the second half of the year, the company said in a statement.