Stocks (MXWD) rose, ending the longest run of declines since November, and copper gained as slowing growth in China fueled speculation policy makers will boost stimulus efforts. Italy’s three-year notes reversed declines after borrowing costs fell at an auction. The MSCI All-Country World Index (SXXP) added 0.4 percent at 10:30 a.m. in London, snapping a seven-day slump. The Stoxx Europe 600 Index increased 0.6 percent, while Standard & Poor’s 500 Index futures gained 0.4 percent. Copper climbed 1.3 percent and Brent oil rose 0.7 percent. Three-year Italian yields fell eight basis points to 4.57 percent, after climbing to 4.91 percent. German bunds advanced while U.S. Treasuries were little changed. The euro erased earlier declines against the dollar. China’s gross domestic product grew a less-than-estimated 7.6 percent in the second quarter, putting pressure on policy makers to build on monetary easing and increase investment. Italy sold 3.5 billion euros ($4.27 billion) of three-year notes priced to yield 4.65 percent, down from 5.3 percent at a previous auction. U.S. consumer confidence probably increased in July, economists said before a report today, and JPMorgan Chase & Co., the biggest U.S. bank by assets, is scheduled to release quarterly earnings. “The market knows China is slowing and we expect more easing,� said Daphne Roth, who helps oversee about $207 billion as head of Asian equity research at ABN Amro Private Banking in Singapore. “They will continue to cut rates. The shift in their engine of growth towards the consumer will take time.� The Stoxx 600’s gain pared this week’s decline to 0.2 percent. Storebrand ASA rallied 8.8 percent as Norway’s second- largest publicly traded insurer said it plans to reduce costs and meet stricter European capital requirements without selling new shares. More Stimulus European stock strategists are backing away from their most-pessimistic forecasts as policy makers agree on measures to tackle the region’s debt crisis. While sticking to predictions for losses of as much as 16 percent, Morgan Stanley’s Ronan Carr raised his recommendation on European equities to neutral on July 2 and Alain Bokobza of Societe Generale SA said he has started to reduce the underweight call he’s had for at least two years. Exane BNP Paribas said investors can find bargains among companies most reliant on economic growth. The increase in S&P 500 futures indicated the U.S. gauge will rebound from six days of losses, the longest losing streak in almost two months. JPMorgan advanced 0.8 percent in German trading. The Thomson Reuters/University of Michigan preliminary index of sentiment rose to 73.5 this month from 73.2 in June, according to the median forecast of 69 economists surveyed by Bloomberg. Emerging Markets The MSCI Emerging Markets Index added 0.9 percent, rebounding from a two-week low. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong increased 0.7 percent, the biggest one-day gain since July 3. South Korea’s Kospi Index gained 1.5 percent, Russia’s Micex rose 0.8 percent and India’s Sensex Index advanced 0.4 percent. The cost of insuring against an Italian default rose for a second day, with credit-default swaps on the government’s debt climbing 18 basis points to 521. Contracts on Spain increased 11 basis points to 580. Copper advanced for a third day. European Union carbon permits for December fell 1.3 percent, the sixth consecutive decline and the longest drop since Nov. 21. The most ambitious market-based effort to control carbon emissions is being undermined by a glut of permits, amid allegations that EU ideas to tackle the surplus are being leaked prematurely. Corn climbed 1.2 percent and soybeans rose 0.8 percent. To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jason Clenfield in Tokyo at jclenfield@bloomberg.net; To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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