A paramagnetic response of transition metals and itinerant d-and f -metal compounds in an external magnetic field is studied by employing ab initio full-potential LMTO method in the framework of the local spin density approximation. Within this method the anisotropy of magnetic susceptibility in hexagonal close-packed transition metals is evaluated for the first time. This anisotropy is owing to the orbital Van Vleck-like paramagnetic susceptibility, which is revealed to be substantial in transition metal systems due to hybridization effects in electronic structure. It is demonstrated, that compounds TiCo, Ni 3 Al, YCo 2 , CeCo 2 , YNi 5 , LaNi 5 and CeNi 5 are strong paramagnets close to the quantum critical point. For these systems the Stoner approximation underestimates the spin susceptibility, whereas the calculated field-induced spin moments provided a good description of the large paramagnetic susceptibilities and magnetovolume effects. It is revealed, that itinerant description of hybridized f electrons produces magnetic properties of CeCo 2 , CeNi 5 , UAl 3 , UGa 3 , USi 3 and UGe 3 compounds in close agreement with experiment. In the uranium UX 3 compounds the strong spin-orbit coupling together with hybridization effects give rise to peculiar magnetic states, where the field-induced spin moments are antiparallel to the external field and the magnetic response is dominated by the orbital contribution.