Sept. 2 (Bloomberg) -- U.S. index futures rose and European stocks erased losses after a report showed U.S. jobless claims fell and the European Central Bank said it would maintain emergency lending. Treasuries declined, the Swiss franc strengthened, and nickel advanced. Standard & Poor’s 500 Index futures advanced 0.2 percent at 8:45 a.m. in New York. The Stoxx Europe 600 Index added less than 0.1 percent. The yield on the 10-year Treasury note increased 6 basis points to 2.63 percent. The franc appreciated close to parity with the dollar after the country’s economy grew more than economists forecast. Nickel led gains in industrial metals and cotton rose to the highest price since March 2008. The ECB should “follow the Fed in terms of saying they will do anything necessary to counter the downside risks should they materialize,” said Nick Matthews, an economist at Royal Bank of Scotland Group Plc in London. The S&P 500 index rose yesterday the most since July 7. Data at 10 a.m. may show contracts to buy previously owned homes fell for a third straight month in July and factory orders increased 0.2 percent, according to the survey. Asian Stocks The MSCI Asia Pacific Index climbed 1.1 percent, and the MSCI Emerging Market Index advanced 0.6 percent. South Korea’s won strengthened 0.3 percent versus the dollar, the second- biggest gain among 27 emerging-market currencies, after the International Monetary Fund raised its growth forecast for the country. The franc strengthened against 14 of its 16 major counterparts, gaining 0.4 percent to 1.0118 versus the dollar. Switzerland’s economy grew 0.9 percent from the first quarter, more than the 0.8 percent median of 18 estimates in a Bloomberg survey. The pound slid 0.4 percent against the dollar as reports showed an index of U.K. construction dropped more than forecast in August, while house prices fell the most in six months. Nickel for delivery in three months climbed 2.3 percent on the London Metal Exchange. Production of nickel, used to make stainless steel, will lag behind demand from next year through at least 2014, according to Standard Chartered Plc. Cotton for December delivery increased as much as 1.4 percent on ICE Futures U.S. in New York, as textile makers restocked inventories. --With assistance from Paul Armstrong, Matthew Brown, Claudia Carpenter and Andrew Rummer in London. Editors: Stephen Kirkland, Justin Carrigan To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net To contact the editor responsible for this story: in London at psillitoe@bloomberg.net

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