Stocks rose for the first time in three days and the euro strengthened after Germany’s economy slowed less than forecast and France unexpectedly averted a contraction. Commodities rallied and the yen weakened. The Stoxx Europe 600 Index gained 0.5 percent at 9:40 a.m. in London. Standard & Poor’s 500 Index futures added 0.2 percent. The euro appreciated 0.3 percent to $1.2369 and the cost of insuring against default on European company debt fell to a four-month low. The yen depreciated against all its 16 major peers after the Bank of Japan signaled it may take new steps to revive growth. Platinum jumped 1.1 percent. Germany’s gross domestic product expanded 0.3 percent in the second quarter from the first, compared with the 0.2 percent predicted in a Bloomberg survey, government data showed. French GDP was unchanged in the quarter, better than the 0.1 percent decline forecast by economists. U.S. retail sales probably increased in July for the first time in four months, analysts said before a Commerce Department report today. “While not great in any way German and French GDP numbers were better than expected, which adds to the scenario that there is no risk of an imminent euro break up,� said Alexander Kraemer, a cross asset strategist at Commerzbank AG in Frankfurt. “It shows global growth is not collapsing, which also helps reduce investment risks.� More than six stocks advanced for every one that retreated on the Stoxx 600. (SXXP) Aker Solutions ASA climbed 2.2 percent after the Norwegian oil-services company posted second-quarter profit and sales that beat analysts’ estimates. K+S AG added 1.1 percent as Europe’s largest potash producer said that it may increase its annual dividend. Sales Drop CRH Plc (CRH) plunged 5.6 percent, its biggest drop this month, as the building-materials company said like-for-like sales in Europe will drop in the second half of the year. S&P 500 futures gained, indicating that the equity benchmark will advance for the seventh time in eight days. The Chicago Board Options Exchange Volatility Index, known as the VIX, declined 7.1 percent yesterday to its lowest level since at least 2008. U.S. retail sales probably increased 0.3 percent following a 0.5 percent drop in June, according to the median forecast of 85 economists surveyed by Bloomberg News. Another report may show prices paid by producers rose last month. The yen fell 0.6 percent against the euro and 0.3 percent versus the dollar. Some Bank of Japan (8301) board members said policy makers shouldn’t dismiss any options in combating risks to the economy from the European sovereign debt crisis, a record of last month’s meeting showed. Greek Auction The yield on benchmark 10-year German bunds climbed three basis points to 1.43 percent and the rate on similar-maturity French debt increased one basis point to 2.10 percent. The yield on 10-year Treasury notes was little changed at 1.67 percent. Yields on Greece’s bonds due in February 2023 increased 16 basis points to 24.5 percent as the nation prepared to sell as much as 3.125 billion euros of three-month bills. The Markit iTraxx Europe index of credit-default swaps linked to 125 companies with investment-grade rankings dropped three basis points to 146 basis points, the lowest since May 7. The S&P GSCI gauge of 24 commodities gained 0.6 percent. Platinum jumped after at least nine people including two policeman were killed at a South African mine owned by Lonmin Plc, the world’s third-biggest producer of the metal. Copper advanced 0.7 percent. Germany is the third-biggest consumer of the metal. The MSCI Emerging Markets Index added 0.8 percent, snapping a two-day decline. Russia’s Micex Index gained 0.7 percent and South Korea’s Kospi Index climbed 1.3 percent. India’s Sensex rose 0.6 percent after inflation eased more than estimated in July. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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