By Gavin Serkin April 6 (Bloomberg) -- The euro weakened and Greek bonds slumped on concern the European Union’s rescue plan for the nation may unravel. Stocks rose and copper surpassed $8,000 per ton on signs of strengthening economies. The euro dropped against 14 of its 16 most-traded peers at 12:58 p.m. in London, while the U.K. currency declined against all 16. Greek two-year yields climbed above 6 percent for the first time in five weeks. Australia’s dollar advanced after the central bank raised interest rates. Futures on the Standard & Poor’s 500 Index declined 0.2 percent, and copper climbed to its highest price since August 2008. The euro depreciated after Market News International said Greece may want to bypass International Monetary Fund involvement in a rescue package. The Reserve Bank of Australia’s increase was the fifth in six meetings, adding to evidence world growth is rebounding after the U.S. said April 2 that employment expanded by the most in three years. The report that Greece “isn’t keen on the IMF being involved in any bailout would seem to throw the whole plan into question,” said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London. “As an investor, do you really want to hang around and see what’s happening next? The Greece story is definitely a negative for the euro.” The euro lost 1 percent against the yen and 0.6 percent compared with the dollar after Market News cited unidentified officials as saying Greece may seek a rescue package that doesn’t involve the IMF. European Union spokeswoman Amelia Torres said the EU wouldn’t comment on the report. Greek Yields Soar Greek bonds fell for a third day, with the yield on the two-year note rising 95 basis points to 6.06 percent. The yield premium on 10-year debt compared with German bunds climbed to 379 basis points, the widest level since Jan. 29. Credit-default swaps on Greek debt rose 7.5 basis points to 353.5, the highest level in five weeks, according to CMA DataVision prices. The Australian dollar strengthened 0.8 percent versus the euro and 0.2 percent against the dollar after central bank Governor Glenn Stevens increased the overnight cash rate target to 4.25 percent from 4 percent. The Canadian dollar traded at parity with the U.S. currency for the first time since July 2008. The pound weakened 0.9 percent versus the dollar, and the yield on the 10-year gilt climbed 9 basis points on concern the election, which U.K. Prime Minister Gordon Brown announced today will be held May 6, won’t produce a clear winner. Stocks Gain The Stoxx Europe 600 index climbed 0.5 percent. Europe’s two largest oil companies, BP Plc and Royal Dutch Shell Plc, rose 1.5 percent and 1.2 percent respectively as crude oil traded near a 17-month high. Rio Tinto Group, the world’s third- biggest mining company, gained 2 percent. The MSCI Asia Pacific Index rose 0.4 percent. “The market is clearly betting on the improvement in the economy,” said Kilian de Kertanguy, who helps oversee about $3.1 billion at Cholet-Dupont Gestion SA in Paris. “Each time economic data support an amelioration, stocks are rising.” The MSCI Emerging Markets gained for an eight day, adding 0.3 percent to reach its highest level since July 31, as Kazakhstan’s KASE Stock Index and Ukraine’s PFTS Index each rose 1.7 percent while Hungary’s Budapest Stock Exchange climbed 1.6 percent. U.S. stock-index futures dropped after a year-long rally pushed the Standard & Poor’s 500 Index to an 18-month high, leaving the benchmark gauge at the most expensive level this year. Figures yesterday showed growth in U.S. service industries and home sales. Treasuries, Copper U.S. Treasuries rose before a record-tying $40 billion sale of three-year notes today. The yield on the 10-year security fell 3 basis points to 3.95 percent, after surpassing 4 percent yesterday for the first time since June. Copper for delivery in three months rose as much as 1.6 percent to $8,009.75 a metric ton on the London Metal Exchange, extending its 12-month gain to 86 percent. Lead added 1.6 percent to $2,244.50 a ton and tin advanced 0.4 percent to $18,520 a ton. White sugar gained 2.1 percent to $462.80 a ton in the Liffe exchange. Oil was little changed near its highest level in 17 months before a report forecast to show U.S. crude inventories increased last week while gasoline supplies fell. Crude for May delivery was at $86.46 a barrel, down 18 cents, in electronic trading on the New York Mercantile Exchange. The cost of protecting against a default on corporate bonds fell, with the Markit iTraxx Crossover Index of 50 mostly high- yield European companies declining 10 basis points to 413, the lowest in more than two weeks, according to Markit Group Ltd. To contact the reporter responsible for this story: Gavin Serkin1 at gserkin@bloomberg.net

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