By Stephen Kirkland Aug. 26 (Bloomberg) -- Stocks rebounded from a seven-week low, U.S. index futures gained and commodities advanced as earnings improved and speculation increased that the Federal Reserve will act to support the U.S. recovery. The yen weakened. The MSCI World Index of stocks in 24 developed nations rose 0.6 percent at 7 a.m. in New York, while futures on the Standard & Poor’s 500 Index increased 0.2 percent. The yen and dollar depreciated against most major currencies. The cost of insuring against a default by the Ireland fell as the government sold 600 million euros ($762 million) of bills. The S&P GSCI Total Return Index of 24 commodities climbed 1.2 percent, the biggest increase since Aug. 17. Credit Agricole SA reported profit that beat analysts’ estimates and L’Oreal SA’s earnings increased. Fed Chairman Ben S. Bernanke will discuss tomorrow the outlook for the economy at the central bank’s annual symposium in Jackson Hole, Wyoming. The speech is “critical” as investors want to see policy makers resume quantitative easing, Geoffrey Yu, a London-based currency strategist at UBS AG, wrote in a report today. “QE No. 2 is going to come over the next quarter,” Alain Bokobza, the head of multiasset strategy at Societe Generale SA in Paris, said on Bloomberg Television’s “On The Move with Francine Lacqua.” “This might be a trigger to allocate out of bonds into more riskier assets including equities or commodities.” Credit Agricole, Kazakhmys The Stoxx Europe 600 Index rebounded from a five-week low, rising 0.6 percent as more than four shares rose for every one that fell. Credit Agricole rallied 2.8 percent, while L’Oreal, the world’s largest cosmetics maker, climbed 6.4 percent. Kazakhmys Plc, Kazakhstan’s biggest copper producer, advanced 3.4 percent, leading basic-resources companies to the largest gains among the 19 industry groups in the Stoxx 600. The MSCI Asia Pacific Index advanced 0.6 percent. Woolworths Ltd., Australia’s biggest retailer, rose 2.4 percent after it forecast increased earnings and said it will buy back shares. Air New Zealand Ltd. gained 4.1 percent after reporting higher profit. The gain in U.S. futures indicated the S&P 500 will advance for a second day. A report may show claims for jobless benefits declined to 490,000 last week from a nine-month high of half a million the prior week, according to a Bloomberg survey of 48 economists. The Labor Department is due to release the data today at 8:30 a.m. in Washington. U.S. gross domestic product probably expanded at a 1.4 percent pace in the second quarter, down from the 2.4 percent rate calculated last month, a Bloomberg survey indicated before a Commerce Department report due tomorrow. U.S., Ireland U.S. 10-year Treasury yields fell three basis points to 2.51 percent. The yield reached an 18-month low of 2.4158 yesterday before closing five basis points higher on the day. Credit-default swaps protecting Ireland’s government bonds dropped 8.5 basis points to 315.5, after yesterday jumping to the highest since March 2009, according to data provider CMA. Investor demand at today’s bill auction was about 10 times more than the February 2011 securities offered and 4.1 times the April 2011 debt, the National Treasury Management Agency said. Ireland had its rating cut by Standard & Poor’s on Aug. 24. The Markit iTraxx Crossover Index of credit-default swaps on 50 mostly junk-rated European companies fell 5.5 basis points to 522.8, Markit Group Ltd. prices showed. The yen depreciated 0.3 percent to 107.41 per euro, while the dollar weakened to $1.2705 per euro from $1.2659 yesterday. The pound gained 0.5 percent to $1.5529. Zinc, Oil Zinc led gains in commodities, rising 3.3 percent to $2,028.50 a metric ton on the London Metal Exchange, the first increase in six sessions. Rubber, coffee and wheat also climbed. Crude oil for October delivery gained 0.8 percent to $73.08 a barrel on the New York Mercantile Exchange. Russia’s Micex Index advanced 0.9 percent, the first increase in three days, and the ruble strengthened 0.6 percent against the dollar. South Africa’s rand appreciated 0.6 percent as rising gold and platinum prices boosted the outlook for export earnings. The Philippine Stock Exchange Index jumped 1.2 percent, the most in seven weeks, after economic growth unexpectedly accelerated last quarter to the fastest pace in three years. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net

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