By Rita Nazareth and Gavin Serkin April 29 (Bloomberg) -- Stocks rose as companies from Motorola Inc. to Unilever NV reported better-than-estimated earnings and European leaders moved closer to helping Greece. Higher-yielding currencies strengthened after the Federal Reserve pledged to keep interest rates at a record low. The Standard & Poor’s 500 Index rose 0.7 percent, while the Stoxx Europe 600 Index climbed 1.2 percent at 9:35 a.m. in New York. The ASE Index jumped 7.6 percent in Athens, the most since October 2008, as French President Nicolas Sarkozy said his nation is determined to help Greece. The extra yield investors demand to hold Greek 10-year bonds instead of benchmark German bunds narrowed 92 basis points to 601 basis points. South Africa’s rand rallied 0.9 percent against the dollar and crude oil and tin led gains in commodities. Investor confidence is recovering after almost three- quarters of companies in the MSCI World Index and S&P 500 that reported earnings topped analysts’ estimates. European confidence in the economic outlook improved to the highest in more than two years, while U.S. jobless claims fell to a one- month low and German unemployment plunged. Fed policy makers restated a pledge yesterday to keep interest rates near zero for an extended period even as the labor market begins to improve. “The Fed statement reassured people and nullified the impact of euro-area concerns,” said Brian Jackson, a senior emerging-markets strategist at RBC Capital Markets in Hong Kong. “It’s a case of the FOMC trumping Greece and Spain.” Earnings Season The S&P 500 has recovered more than half of its 2.3 percent plunge on April 27 when S&P cut Greece’s credit rating to junk and lowered Portugal by two steps. With the first-quarter earnings season past the half-way point, S&P 500 companies have beaten analysts’ estimates by an average of 20 percent on a per- share basis, according to data compiled by Bloomberg. Motorola, the largest U.S. mobile-phone maker, rallied 4.1 percent after forecasting second-quarter earnings that topped analysts’ estimates amid growing demand for models like the Droid. Aetna Inc. and Starwood Hotels & Resorts Worldwide Inc. were also among companies that climbed after reporting better- than-estimated earnings. Initial jobless claims fell by 11,000 to 448,000 in the week ended April 24, in line with the median forecast of economists surveyed by Bloomberg News and the lowest level in a month, Labor Department figures showed. The number of people receiving unemployment insurance and those getting extended payments decreased. Global Advance The MSCI World Index of 23 developed nations’ stocks rose 0.59 percent. Food and beverage stocks led gains in Europe as Unilever, the world’s second-largest food and detergent company, rallied 3.9 percent in Amsterdam after saying profit rose 33 percent. Pernod Ricard SA, the maker of Absolut vodka, rallied 3.2 percent in Paris after raising its forecast for full-year earnings. Siemens AG, Europe’s largest engineering company, advanced 0.4 percent in Frankfurt after profit topped estimates. The rand and Brazilian real rose at least 0.6 percent to lead gains among 14 of 16 major currencies against the dollar as investors bought currencies in countries with higher interest rates. Brighter economic prospects in Asia and widening interest-rate differentials are likely to attract more capital, while bets for exchange-rate appreciation in the region may boost so-called carry trades, the IMF said in a report today. The euro strengthened 0.1 percent to $1.3229, after trading at $1.3115 yesterday, the lowest level in a year. Investors demanded an extra 6 percentage points in yield to buy Greece’s 10-year bonds rather than benchmark German bunds, after the difference in yield, or spread, widened to more than 8 percentage points yesterday. Fastest Pace German unemployment declined at the fastest pace in more than two years in April, the Nuremberg-based Federal Labor Agency said today. An index of executive and consumer sentiment in the 16 euro nations rose to 100.6 in April from a revised 97.9 in March, the European Commission in Brussels said today. Spanish 10-year bonds rose, cutting the yield by 7 basis points to 4.04 percent. The Italian 10-year bond yield fell 3 basis points to 4.07 percent even as the nation sold 8 billion euros ($11 billion) of securities due in 2012, 2017 and 2020. Tin for delivery in three months added 2.1 percent to $18,375 a metric ton on the London Metal Exchange, the steepest advance since February. Aluminum also gained. Gold slipped 0.2 percent to $1,163.45 an ounce in London and crude oil added 1.8 percent to $84.68 a barrel in New York. To contact the reporters for this story: Gavin Serkin at gserkin@bloomberg.net.

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