U.S. index futures rose as equities rebounded from the biggest sell-off in 14 months. The euro strengthened and European stocks rallied as demand at a central bank tender signaled funding pressure for lenders was easing. Futures on the Standard & Poor’s 500 Index added 0.8 percent, and the Stoxx Europe 600 Index jumped 0.4 percent at 11:55 a.m. in London. The euro appreciated from the weakest level in more than eight years against the yen as the European Central Bank said it will lend banks 131.9 billion euros ($161.5 billion) for three months, less than some analysts estimated, as a landmark yearlong loan expires. “Lower demand for ECB cash is an indication that funding stress is not as high as was feared, contributing to a recovery of risk appetite,” wrote Christoph Rieger, co-head of fixed- income strategy at Commerzbank AG in Frankfurt, in a research note. “Risk aversion stands a chance of retreating from its elevated levels in coming weeks.” More than $7 trillion has been erased from the value of global equities since the April 15 peak, on concern Europe’s debt crisis and China’s efforts to contain inflation will stifle the global economic recovery. The MSCI World Index of 24 developed nations sank 3.2 percent yesterday, the biggest drop since April 2009, after U.S. consumer confidence unexpectedly declined and a Chinese economic index was revised lower. The gain in futures signaled the S&P 500 will rebound from its lowest since Oct. 30. Investors will watch the ADP National Employment Report today as an indication of what a monthly release on non-farm payrolls may show July 2. The ADP report, a measure of private employment, is due at 8:15 a.m. New York time. The Institute for Supply Management-Chicago Inc. releases its business barometer at 9:45 a.m. Bank Refinancing Banks led European stocks higher, with the Stoxx 600 rebounding from the biggest drop yesterday in six weeks. EFG Eurobank Ergasias SA, Greece’s second-biggest bank, climbed 4 percent, and Banco Santander of Spain rose 4.3 percent. Euro-region banks need to repay 442 billion euros ($540 billion) tomorrow after the ECB lent the biggest amount ever a year ago in its efforts to fight the financial crisis last year. Laurent Fransolet, head of European fixed-income strategy at Barclays Plc in London, estimated before the ECB release that banks would ask for between 250 billion euros and 300 billion euros, with the higher end of the range indicating banks were still finding it hard to fund themselves. The euro strengthened 0.7 percent to 108.69 against the yen, and climbed 0.6 percent to $1.2264. European bonds fell. The futures contract on 10-year German government debt for September settlement erased earlier gains, declining 0.12 point to 129.31, while the yield on the 10-year note rose 2 basis points to 2.57 percent. Commodities rose, with copper gaining 0.9 percent to 6,555 a metric ton on the London Metal Exchange. Gold added 0.2 percent to $1,244.50 an ounce and New York-traded crude oil for August delivery rose 0.8 percent to $76.56 a barrel. ----With assistance from Mark Gilbert, Michael Patterson, Andrew Rummer, Daniel Tilles, Steve Voss and Alexis Xydias in London. Editors: Stephen Kirkland, Mark Gilbert To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net;

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