Stocks, U.S. index futures and commodities rose before a report that will probably show America’s jobless claims declined. Italian bonds fell and sovereign debt insurance costs climbed to records on concern higher interest rates will exacerbate Europe’s credit crisis. The Stoxx Europe 600 Index added 0.3 percent at 7 a.m. in New York and Standard & Poor’s 500 Index futures gained 0.3 percent. The S&P GSCI index of 24 commodities rose 0.6 percent. Portugal’s two-year note yield jumped to a record 17.75 percent, and the Italian 10-year yield increased seven basis points. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments advanced five basis points to 254. The euro weakened against all but two of its 16 major peers. Americans filing claims for jobless benefits probably fell last week, economists said before a Labor Department report today. Data tomorrow may show payrolls rose in June. European Central Bank President Jean-Claude Trichet will probably raise rates today for the second time this year, economists said. “I wouldn’t be surprised to see the market stabilize or go a bit higher but I wouldn’t be too optimistic about new highs,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion globally. Two stocks advanced for every one that fell in the Stoxx 600. Man Group Plc (EMG) climbed 3.3 percent to a one-month high as the world’s biggest hedge fund manager reported increased assets. ThyssenKrupp AG fell 5.3 percent as Germany’s largest steelmaker sold as much as 1.68 billion euros ($2.4 billion) of shares to help reduce debt. Jobless Claims The gain in S&P 500 futures indicated the U.S. equities gauge will rise for a second day. Reports today may show the number of Americans making initial claims for jobless benefits fell to 420,000 last week and companies added 70,000 workers in June, according to Bloomberg surveys of economists. The data come a day before the Labor Department’s monthly payrolls release, which is forecast to show an increase of 100,000 jobs. “There’s no alternative to equities right now,” said Robert Halver, head of research at Baader Bank AG in Frankfurt. “Even if the ECB raises interest rates, we still have a very good environment for equities with low interest rates and high liquidity.” The euro slipped 0.2 percent to $1.4287. After raising rates today, the ECB may increase borrowing costs further in the fourth quarter, according to a Bloomberg survey of economists. The pound depreciated 0.2 percent to $1.5975 after the Bank of England kept its main rate at a record low 0.5 percent. Default Risk Credit-default swaps insuring Portugal’s debt jumped 70 basis points to a record 1,005, signaling a 58 percent chance of default within five years. Swaps on Ireland rose 38 basis points to an all-time high 881, while Greece surged 98 basis points to a record 2,248, according to CMA. The yield on the Spanish 10- year bond rose eight basis points, climbing for the fourth consecutive day, and the two-year note yield advanced five basis points. Spain sold 3 billion euros of three-year and five-year bonds, the central bank said. The MSCI Emerging Markets Index gained 0.2 percent, advancing for the first time in three days. Russia’s Micex Index (INDEXCF) jumped 1.5 percent as oil rose and Bank of America Corp. said it favored coal and gold producers. The Shanghai Composite Index fell 0.6 percent after the central bank raised interest rates for a third time this year. The Thai baht appreciated 0.3 percent against the dollar after incoming Prime Minister Yingluck Shinawatra said her government intended to let the currency strengthen. World food prices climbed last month staying close to the all-time high of 238 in February. An index of 55 food commodities rose to 234 points in June from 231 points in May, the United Nations’ Food and Agriculture Organization said. Rice climbed 1.8 percent, the fifth gain in a row. Crude oil in New York rose 0.8 percent to $97.39 a barrel. 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 at psillitoe@bloomberg.net

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