By Stephen Kirkland Sept. 8 (Bloomberg) -- Stocks rose, rebounding from yesterday’s slide, while Treasuries and the dollar declined after improved demand for Portuguese and Polish bonds eased concern that Europe’s debt crisis is worsening. The Standard & Poor’s 500 Index gained 0.3 percent at 9:35 a.m. in New York and the Stoxx Europe 600 Index advanced 0.7 percent. The premium investors demand to hold Portuguese 10-year bonds instead of benchmark German bunds was 352 basis points after reaching a record 372 points yesterday. Two-year Treasury yields rose 3 basis points to 0.51 percent. Coffee surged to a 13-year high on concern about a potential lack of supply. Portugal’s sale of bonds due in 2021 attracted bids for 2.6 times the amount offered, compared with a bid-to-cover ratio of 1.6 in the earlier March sale. Poland’s auction of five-year debt attracted the strongest demand since 2008. Two-year Treasuries slipped as investors bet that yields near a record low aren’t justified given the reduced risk of the economy slipping back into a recession. “Today’s news flow on debt sales in Europe is giving some relief,” said Roberto Campani, senior portfolio manager at Pioneer Investments in Dublin, which manages the equivalent of $236 billion. “We are in a situation where the swinging from risk-on to risk-off is a bit too quick as skepticism over a self-sustainable economic recovery and concern over a double-dip in western markets persist.” Costco, Staples Rally The S&P 500 recovered about a quarter of yesterday’s 1.2 percent drop. Costco Wholesale Corp. and Staples Inc. advanced at least 1.2 percent after Goldman Sachs Group Inc. advised buying shares in the retailers. The Federal Reserve will release its Beige Book survey of conditions in its 12 districts at 2 p.m. in Washington today before officials meet to review monetary policy on Sept. 21. A separate report from the Fed at 3 p.m. may show consumer credit in the U.S. declined by $4.5 billion in July, a sixth straight loss, according to the median of 35 economists in a Bloomberg survey. About three stocks rose for every two that fell in Europe’s Stoxx 600. BP Plc jumped 1.8 percent after its long-term issuer default rating and senior unsecured rating were raised to A from BBB by Fitch Ratings. The three-level upgrade and stable outlook reflect an end to the threat of leaks from the Macondo well in the Gulf of Mexico, Fitch said. BP today released its internal investigation of the causes of the oil spill. Ericsson AB rallied 4 percent as Credit Suisse Group AG reiterated its “outperform” recommendation for the shares. German Exports Germany’s DAX Index climbed 0.4 percent even after the nation’s exports slumped 1.5 percent in July, the first drop in three months, the government said. The yield on 10-year Treasuries rose 5 basis points to 2.64 percent before a government sale of $21 billion worth of notes today, the second of three debt auctions this week totaling $67 billion. Portuguese bonds pared earlier declines, with the yield on the 10-year note rising 5 basis points to 5.83 after the sale of about 1.04 billion euros ($1.32 billion) of 2013 and 2021 debt today. Gold for immediate delivery rose as much as 0.5 percent to $1,256.90 an ounce in London, near the record $1,265.30 reached in June. October crude oil fluctuated near $74 a barrel on the New York Mercantile Exchange. Coffee rose to a 13-year high in New York on concern about a potential lack of supply. Arabica coffee for December delivery rose as high as $1.9865 a pound on ICE Futures U.S., gaining for a fifth day. The MSCI Emerging Markets Index slipped 0.3 percent. China Mobile Ltd. retreated 3.8 percent, its biggest decline since August 2009, after Vodafone Group Plc said it’s selling its 3.2 percent stake in the company. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net

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