By Claudia Carpenter June 9 (Bloomberg) -- European stocks, U.S. index futures and metals rallied after Reuters reported a surge in China’s exports. Government debt sales drove down German and U.K. bonds. The Stoxx Europe 600 Index gained 0.6 percent at 12:15 p.m. in London, snapping three days of losses. China’s Shanghai Composite Index climbed 2.8 percent, the most in more than two weeks. Futures on the Standard & Poor’s 500 Index added 0.2 percent. Copper and oil rose and gold declined after climbing to a record yesterday. German notes fell after a 4.6 billion-euro ($5.5 billion) debt sale. China’s exports in May grew about 50 percent from a year earlier, Reuters said. Most advanced economies are experiencing a “subdued” recovery, and risks to the global economic outlook have “risen significantly,” IMF Deputy Managing Director Naoyuki Shinohara said. A survey of Bloomberg customers showed 73 percent of participants expect Greece to default. Germany, Portugal, the U.K. and the U.S. are selling bonds today to cover burgeoning deficits. “Earnings continue to be revised higher,” Mislav Matejka, the London-based head of European equity strategy at JPMorgan Chase & Co., wrote in a report to investors. The “majority of macro indicators for May remained robust, globally, as well as in Europe.” U.S. futures swung between gains and losses after rebounding from declines of as much as 0.6 percent. The Federal Reserve will release its Beige Book, a summary of commentary on economic conditions, later today. A report from the Commerce Department set for 10 a.m. in Washington may show inventories at U.S. wholesalers rose for a fourth month in April. Emerging Markets China led gains in emerging markets including Russia, South Africa and the Czech Republic. The Micex Index rose 1 percent in Moscow, and the gauge for shares in Johannesburg added 1.5 percent. The Czech PX index advanced 1.1 percent after a report showed the economy returned to growth at the start of the year after shrinking for four quarters. Copper for delivery in three months climbed 0.7 percent to $6,209 a metric ton on the London Metal Exchange, and gold for immediate delivery fell 0.6 percent to $1,236.13 an ounce, and down from a record $1,252.11 yesterday. Oil advanced for a second day as an industry report showed the biggest weekly decline in U.S. crude stockpiles in six months. A government report today will probably also show stockpiles dropped, according to a Bloomberg News survey of 15 analysts. Crude for July delivery gained as much as 83 cents, or 1.2 percent, to $72.82 a barrel in New York. German Bund Germany’s benchmark 10-year bund yield rose 3 basis points to 2.53 percent. Countries are selling record amounts of debt this year after funding stimulus programs to boost their economies during last year’s recession. The 10-year gilt yield climbed 3 basis points to 3.51 percent as Britain sold 3.75 billion pounds ($5.4 billion) of 2020 securities. The U.S. is issuing $21 billion of 10-year notes, and Portugal auctioned 1.52 billion euros of debt due in 2013 and 2020. Credit-default swaps on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings climbed 4 basis points to 632.5, according to JPMorgan. The index is a benchmark for the cost of protecting bonds against default and an increase signals a deterioration in perceptions of credit quality. The dollar strengthened to $1.1960 per euro from $1.1973 in New York yesterday, after reaching $1.1924. It climbed as high as $1.1877 per euro on June 7, the strongest since March 2006. The dollar bought 91.38 yen from 91.46. The yen appreciated to 109.31 per euro from 109.51 yesterday. Hungary’s forint strengthened for a third day, advancing 0.6 percent to 282.36 versus the euro, as the government’s deficit-reduction plan allayed concern that the country may be headed for a Greece-like debt crisis. To contact the reporter for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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