By Rita Nazareth and David Merritt March 16 (Bloomberg) -- Stocks and commodities rose amid dwindling concern U.S. banking regulations will hurt profits and speculation the Federal Reserve will signal plans to keep interest rates at a record low for much of the year. The dollar fell and 10-year Treasury yields were near a one-week low. The Standard & Poor’s 500 Index increased 0.2 percent to 1,152.79 at 9:31 a.m. in New York, maintaining its highest level in 17 months. The Stoxx Europe 600 Index of equities gained 0.6 percent. Copper and oil climbed for the first time in three days. The Dollar Index lost 0.3 percent as the U.S. currency weakened against 13 of 16 major counterparts. The 10-year note’s yield was little changed at 3.70 percent. Senate Banking Committee Chairman Christopher Dodd diluted a proposed overhaul of bank rules, while the U.S. central bank’s Federal Open Market Committee meets today amid predictions inflation will remain subdued. European finance ministers worked out a strategy for emergency loans to Greece should the nation fail to reduce the region’s biggest budget deficit. “Inflation remains very mild; that suggests the Fed can stay on hold for longer,” said Jeffrey Kleintop, who helps oversee about $279 billion as chief market strategist at LPL Financial in Boston. “Still, the stock market is holding its breath a little bit ahead of the FOMC statement, especially when it relates to the purchases of mortgage-backed securities, which are expected to end at the end of this month.” The MSCI World Index of 23 developed nations’ stocks advanced 0.4 percent. Barclays Plc, Britain’s second-largest bank, and BNP Paribas SA, France’s biggest, rose more than 1 percent after Morgan Stanley raised its price estimates. BHP Billiton Plc, the world’s biggest mining company, helped lead gains by basic-resources shares, rising 0.6 percent in London. 17-Month High U.S. financial shares reversed declines in the final hour of trading yesterday after Dodd outlined his proposals to overhaul banking rules. The plans for the biggest Wall Street changes since the 1930s drop provisions he sought in November and dilute others as he seeks bipartisan support. Fed Chairman Ben S. Bernanke may keep the target rate for overnight loans between banks in a range of zero to 0.25 percent, according to Bloomberg News surveys. The Federal Open Market Committee will release its statement at about 2:15 p.m. New York time. U.S. equities gained even after a Commerce Department report showed housing starts in the U.S. fell in February as record snowfall in parts of the country hampered construction, while fewer building permits signaled demand is stagnating. Dubai Shares Jump The Dubai Financial Market General Index climbed 2.1 percent. United Arab Emirates Central Bank Governor Sultan bin Nasser al-Suwaidi said in an interview that Dubai isn’t likely to need more central bank aid, while a Dubai World restructuring plan will be discussed “very soon.” The MSCI Emerging Markets Index rose 0.5 percent after tumbling the most in more than two weeks yesterday. The euro appreciated 0.3 percent against the dollar and the yen after Germany’s ZEW Center for European Economic Research said investor confidence declined less than analysts had estimated. Copper for delivery in three months rose 1.6 percent to $7,425 a metric ton on the London Metal Exchange, while zinc added 1.5 percent to $2,312 a ton. Crude oil for April delivery rose 1.4 percent to $80.94 a barrel in New York as Saudi Arabia’s oil minister said the Organization of Petroleum Exporting Countries will probably maintain output at a meeting tomorrow in Vienna. To contact the reporters on this story: Rita Nazareth in New York at ritanazareth@bloomberg.net; David Merritt in London on dmerritt1@bloomberg.net.

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