German bond yields rose from near all-time lows as Moody’s Investors Service cut the outlook on the nation’s Aaa rating, while U.S. stock-index (SPX) futures fell and the euro weakened. The yield on the 10-year bund, Europe’s benchmark debt security, climbed six basis points to 1.23 percent by 11:29 a.m. in London after matching the record low of 1.127 percent yesterday. The euro depreciated for a fifth day against the yen. Futures on the Standard & Poor’s 500 Index declined 0.3 percent. The Stoxx Europe 600 Index was 0.2 percent lower after the biggest two-day drop since November. The cost of insuring against a European corporate default rose for a third day. Oil rebounded from its lowest close in a week. Moody’s lowered the outlooks on the Aaa credit ratings of Germany, the Netherlands and Luxembourg yesterday, citing the “rising uncertainty� about Europe’s debt crisis. Apple Inc. (AAPL), the world’s largest company by market value, and United Parcel Service Inc., the biggest package-delivery company, are among 41 members of the S&P 500 due to report earnings today. “Europe’s recession is deepening and spreading to the core, including Germany,� said Kit Juckes, head of currency research at Societe Generale SA in London. “For investors, fearful of downgrades even to core debt, the path of least resistance will be to look outside Europe and hope that the U.S. data is a little stronger.� Bond Market Dutch bonds fell a second day, pushing the yield as much as 10 basis points higher to 1.74 percent, the biggest increase since June 29. The Netherlands sold 1.76 billion euros ($2.1 billion) of bonds today. Ten-year U.S. Treasury yields were little changed at 1.44 percent. Spanish securities extended yesterday’s slump, with the 10- year yield climbing to a euro-era record of 7.61 percent. The nation sold 3.05 billion euros of bills at auction, more than a maximum target of 3 billion euros. The two-year yield advanced 10 basis points to 6.63 percent. The euro was little changed at $1.21 after falling below $1.21 for a second day. The dollar weakened 0.3 percent to 78.2 yen. The Stoxx 600 (SXXP) extended a 4 percent three-day drop. Elan Corp. sank 14 percent in Dublin after an experimental Alzheimer’s treatment developed with Pfizer Inc. and Johnson & Johnson failed to improve symptoms of dementia in a study. Man Group Plc surged 11 percent after the world’s biggest publicly traded hedge-fund manager said it would double its planned cost cuts and reduce reliance on products with steeper commissions. S&P 500 futures erased an earlier advance of 0.2 percent. Texas Instruments Inc. declined 0.1 percent in Germany as the largest maker of analog chips forecast third-quarter sales and profit that may miss some analysts’ estimates. Company Earnings Earnings have exceeded analyst estimates at about 73 percent of the 125 S&P 500 companies that reported quarterly results so far, according to data compiled by Bloomberg. Sales rose an average 3 percent and profits are up 0.1 percent. The Markit iTraxx Crossover Index of 50 mostly junk-rated firms rose four basis points to 680, the highest since July 6. Soybeans retreated 2.2 percent and wheat fell 2.1 percent in Chicago. There is a chance of some significant rainfall in the northern and eastern areas of the Corn Belt in the middle of this week, Telvent DTN Inc. said in a report yesterday. Oil in New York gained 0.5 percent to $88.54 a barrel. The MSCI Emerging Markets Index (MXEF) fell 0.1 percent, headed for its lowest close since June 28. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong declined 0.6 percent while the Shanghai Composite Index (SHCOMP) rose from its lowest level since 2009, adding 0.2 percent. The Micex Index slid 0.3 percent in Russia as OAO Gazprom Neft, the oil arm of the state gas monopoly, tumbled 1.8 percent. To contact the reporters on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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