By Stephen Kirkland Nov. 11 (Bloomberg) -- The euro weakened and Portuguese bonds fell on concern indebted nations may need bailouts, while U.S. index futures dropped after Cisco Systems Inc. said profit will miss analysts’ estimates. Asian stocks rose and commodities jumped as China’s credit rating was increased. The euro weakened against 13 of its 16 most-traded counterparts at 10:45 a.m. in London. The extra yield investors demand to hold Portuguese 10-year bonds instead of benchmark German bunds climbed to a record 483 basis points. Standard & Poor’s 500 Index futures sank 0.3 percent as Cisco plunged 12 percent in Germany. The Stoxx Europe 600 Index fluctuated, while the MSCI Asia Pacific Index rose 0.3 percent. Copper jumped to a record and oil climbed to a two-year high. Investors must share the cost of sovereign debt restructurings, French Finance Minister Christine Lagarde said yesterday, backing a German call that helped drive yields on so- called peripheral bonds to record highs. China had its debt rating raised one step today to Aa3 by Moody’s Investors Service, which cited the nation’s financial strength and ability to contain losses from a credit boom. “Lagarde’s comments mentioned restructuring, and that’s another nail in the coffin” for peripheral debt, said Steven Major, global head of fixed-income research at HSBC Holdings Plc in London. “There’s still a big constituency of investors and traders who have not recognized until now that restructuring could happen.” The euro slid 0.3 percent to 113.07 yen, while the Dollar Index, which tracks the U.S. currency against those of six trading partners, climbed 0.2 percent, rising for the fifth consecutive day, the longest run of gains since August. Yuan, G-20 The yuan rose 0.2 percent to 6.6230 per dollar as leaders of the Group of 20 nations gathered in Seoul amid growing concern about trade imbalances and foreign-exchange controls. The currency reached 6.6173 in Shanghai, the highest since 1993, amid speculation policy makers will accept a stronger yuan to curb inflation and meet the demands of trading partners. The bonds of Greece and Spain declined, sending spreads over bunds wider. The gap between Greek 10-year bonds and similar-maturity German debt increased 17 basis points to 928 basis points, with the Spanish-German spread expanding six basis points to 212 basis points. The Markit iTraxx SovX Western Europe Index of credit- default swaps on debt of 15 governments including Germany, Italy and Spain climbed 2.5 basis points to a record 179, according to data provider CMA. U.S. bond markets are closed for the Veterans’ Day holiday. Viacom, Disney The drop in U.S. futures indicated the S&P 500 may pare yesterday’s 0.4 percent advance. Cisco, the sixth-largest U.S. technology company by market value, said fiscal second-quarter profit excluding some items will range between 32 cents and 35 cents a share, less than the average analyst estimate of 42 cents. About 76 percent of companies in the S&P 500 that reported earnings since Oct. 7 have beaten analysts’ estimates for per- share profit, according to data compiled by Bloomberg. Viacom Inc. and Walt Disney Co. are among companies due to release earnings today. Three stocks fell for every two that gained in Europe’s Stoxx 600. Banco Santander SA, Spain’s largest lender, lost 1.3 percent and UniCredit SpA, Italy’s biggest, sank 2.3 percent. Bank of Ireland tumbled 8.2 percent and Royal Bank of Scotland Group Plc slumped 4.7 percent. Telefonica SA, Europe’s second-biggest phone company, slid 1.7 percent as earnings missed estimates. Siemens AG rallied 2.7 percent after boosting its dividend. Mining stocks also gained, led by Antofagasta Plc, which rose 3.9 percent. Emerging Markets The MSCI Emerging Markets Index retreated 0.3 percent, falling for a second day. South Korea’s Kospi index plunged in the last minute of trading to end down 2.7 percent as the expiration of options contracts spurred the largest-ever sale of equities by foreign investors. Central European Media Enterprises Ltd. tumbled 7.3 percent after the television broadcaster was removed from the MSCI Czech Republic Index by MSCI Inc. China’s Shanghai Composite Index advanced 1 percent after Moody’s upgraded the nation’s debt to the fourth-highest investment grade. The nation’s efforts to tackle asset bubbles and avert the spread of bad loans has meant the “likely containment and effective management” of losses from record lending last year to counter the financial crisis, Moody’s said. That combined with China’s “resilient” economic growth were reasons for the upgrade, the ratings company said. Copper climbed to an all-time high of $8,966 a metric ton after China’s industrial production advanced 13 percent in October. Crude oil rose 0.8 percent to $88.55 a barrel, the highest price since Oct. 9, 2008. The S&P GSCI index of 24 commodities jumped 0.7 percent, the ninth consecutive gain, the longest rally since July last year. --With assistance from Claudia Carpenter, David Merritt, Abigail Moses, Daniel Tilles and Jason Webb 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: Paul Sillitoe in London at psillitoe@bloomberg.net

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