European stocks and the euro pared gains after Greek leaders said they would seek to renegotiate the terms of an international bailout. Spanish two-year yields stayed higher after an auction and U.S. index futures fell. The Stoxx Europe 600 Index (SXXP) added less than 0.1 percent at 9:41 a.m. in London, after climbing as much as 0.5 percent. Standard & Poor’s 500 Index (SPX) futures slipped 0.1 percent. The euro was little changed at $1.2582. The yield on Spain’s two- year note increased four basis points, and the cost of insuring the country’s debt fell from an all-time high. Oil declined 0.6 percent in New York. Evangelos Venizelos, the head of Greece’s Pasok party, said said there was initial agreement on a policy framework for the new government, as well as on the need to put together a team to renegotiate some of the terms included in an international rescue. Fed policy makers will begin a two-day meeting today as Group of 20 leaders focus their response to Europe’s financial crisis at a summit in Mexico. Borrowing costs for Spain, the region’s fourth-biggest economy, rose at the sale of 12-month bills. German investor confidence probably fell this month, economists said before a report today. The yen strengthened against all 16 of its most-traded peers, climbing 0.3 percent versus the dollar and 0.1 percent against the euro. Denmark’s central bank sold a note due 2014 at a negative yield for the first time. Denmark sold 1.55 billion kroner ($262 million) of its 2 percent note due 2014 at a negative yield of 0.08 percent compared with a positive yield of 0.31 percent on April 24, the central bank said. To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net

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