The euro strengthened against most of its major peers and U.S. stock-index futures rose before German lawmakers vote on changes to a European bailout fund. Shares in Europe rebounded from earlier losses and Greek bonds rallied, while copper dropped. The euro appreciated 0.8 percent to $1.3654 at 10:10 a.m. in London. The yield on the Greek two-year note tumbled 88 basis points to 68.89 percent. Standard & Poor’s 500 Index futures jumped 0.9 percent, signaling a rally from yesterday’s 2.1 percent drop. The Stoxx Europe 600 Index advanced 0.4 percent. Copper fell for a second day and gold climbed 1.3 percent. German Chancellor Angela Merkel is seeking support from lawmakers for the vote today to expand the European Financial Stability Facility’s firepower. Concern Greece will default is dragging global equities and commodities toward their biggest quarterly losses since 2008. About three-quarters of global investors surveyed by Bloomberg say the euro-area economy will fall into recession in the next year and more than half predict China’s growth will slow to less than 5 percent a year by 2016. “Investors appear to be pinning their hopes on the German vote on the euro-area rescue fund,” said Im Jeong Jae, a Seoul- based fund manager at Shinhan BNP Paribas (BNP) Asset Management Co., which oversees about $28 billion. “They seem to be betting that the region’s debt troubles, though there will be sporadic bumps, will eventually be resolved.” The 17-nation European currency rose 0.8 percent against the yen, while the Dollar Index, which tracks the U.S. currency against those of six trading partners, slid 0.8 percent. The greenback weakened 0.8 percent against the Australian dollar and dropped 0.7 percent versus New Zealand’s currency. AMD, BNP The gain in S&P 500 futures indicated the U.S. equities gauge will climb for the fourth time in five days. Advanced Micro Devices Inc. (AMD) fell 6.7 percent in German trading after the second-largest maker of processors for personal computers cut its forecasts for third-quarter sales and profits. The Stoxx 600 swung between gains and losses at least seven times today. BNP Paribas SA and Commerzbank AG led a rally in banks, climbing more than 5 percent. Hennes & Mauritz AB advanced 4 percent as Europe’s second-largest clothing retailer reported earnings that beat analysts’ estimates. Rio Tinto Group led mining companies lower. The yield on the Greek 10-year bond fell for the third day, declining 21 basis points. That drove the difference in yield with benchmark German bunds down by 17 basis points to 2,086 basis points. The yield on Italy’s 10-year bond rose two basis points as the government sells 9 billion euros of bonds maturing in 2014, 2015, 2021 and 2022. The Portuguese 10-year yield dropped 22 basis points, falling for a second day, with similar- maturity Irish yields retreating for the fourth straight day. Treasuries The yield on the 10-year U.S. Treasury note was little changed at 1.99 percent before the government auctions $29 billion of seven-year notes, the last of three sales this week. Copper fell 1.5 percent, trimming an earlier drop of as much as 5.9 percent. Gold rebounded to $1,629.43 an ounce and silver jumped 4.3 percent to $31.1362 an ounce. The S&P GSCI gauge of 24 raw materials rose 0.7 percent, bringing the drop since June to 9.1 percent, the most since the fourth quarter of 2008. The MSCI Emerging Market Index rose 0.4 percent, trimming this quarter’s slump to 22 percent, the worst performance since 2008. Turkey’s ISE National 100 Index rose 1.6 percent, and South Korea’s Kospi Index jumped 2.7 percent. The Shanghai Composite Index dropped 1.1 percent to a 14-month low on concern growth will slow. To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Shiyin Chen in Singapore at schen37@bloomberg.net. To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

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