Stocks rose, with a global benchmark index climbing the most in two weeks, after China’s industrial output topped economists’ estimates. Portugal’s bonds fell as European officials meet to discuss the Greece’s debt crisis, while the Swiss franc, dollar and yen weakened. The MSCI All-Country World Index advanced 0.6 percent at 10:18 a.m. in London as China’s Shanghai Composite Index jumped 1.1 percent. Standard & Poor’s 500 Index futures rallied 0.9 percent. The Swiss franc slid against its 16 major peers, while the yen sank 0.4 percent versus the euro and the Dollar Index dropped 0.2 percent. Portugal’s two-year note yield increased 15 basis points, while Greek yields rose 14 basis points to a euro- era record 17.12 percent. Copper and oil gained. China’s industrial production rose 13.3 percent in May, while inflation quickened in line with analysts’ forecasts, data showed today. Gains in stocks were capped after Chinese policy makers raised the reserve-requirement ratio for banks by 50 basis points. European Union officials are meeting in Brussels amid disagreements over how to resolve the crisis in Greece as governments planned to sell more than 22 billion euros ($32 billion) of debt. “China’s industrial production was a big surprise today as everyone in the last few days was worried about the economy slowing down,” said Andreas Lipkow, an equity trader at MWB Fairtrade Wertpapierhandelsbank AG in Frankfurt. The Stoxx Europe 600 Index climbed 0.8 percent as more than five stocks gained for each that fell. Rio Tinto Group led mining companies higher, rising 1 percent. Nokia Oyj climbed 2.3 percent after agreeing to settle all patent litigation with Apple Inc. in a deal that awards a one-off payment and royalties to the Finnish maker of mobile phones. Retail Sales The advance in S&P 500 futures indicated the U.S. equities gauge will extend its rebound from six straight weeks of losses. Sales at retailers probably fell 0.5 percent in May, the first drop in 11 months, according to the median forecast of 63 economists surveyed by Bloomberg before the Commerce Department releases the data today. A separate report is forecast to show producer-price inflation slowed. The yield on the 10-year U.S. Treasury note climbed three basis points to 3.01 percent. China’s industrial production topped the 13.1 percent median estimate in a Bloomberg survey, while fixed-asset investment quickened and inflation accelerated to the fastest pace in almost three years. Equities pared some gains after the People’s Bank of China said it will raise lenders’ reserve requirement ratio by 0.5 percentage point. The MSCI Emerging Markets Index climbed 0.7 percent, set for the biggest gain since May 31. Taiwan’s Taiex Index rose 1.3 percent and South Korea’s Kospi rallied 1.4 percent, while Poland’s WIG20 Index added 0.5 percent as KGHM Polska Miedz SA advanced on higher copper prices. Greece Downgrade The cost of insuring European corporate bonds fell, after surging to a three-month high. The Markit iTraxx Crossover Index of credit-default swaps on 40 mostly junk-rated companies dropped seven basis points to 399, after climbing to the highest since March 17 yesterday, according to JPMorgan Chase & Co. Greece was downgraded yesterday three levels to CCC, the world’s lowest credit rating, by S&P, which said the nation is increasingly likely to face a debt restructuring. The Markit CDX North America High Yield Index, which falls as investor confidence deteriorates, has dropped 3.6 percent since the end of April. Copper climbed 1.3 percent and crude oil gained 0.4 percent to $97.63 a barrel. China is the biggest energy consumer and largest buyer of industrial metals. Corn dropped 1.4 percent. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Stuart Wallace at swallace@bloomberg.net

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