Stocks rose around the world and commodities rebounded from a seven-week low amid speculation China’s government will do more to support economic growth. Spain’s bonds advanced as ministers met to approve a 2013 austerity budget. The MSCI All-Country World Index (MXWD) climbed 0.3 percent at 12:32 p.m. in London, and futures on the Standard & Poor’s 500 Index advanced 0.5 percent. The Shanghai Composite Index jumped the most in three weeks, while the S&P GSCI gauge of 24 commodities gained 0.8 percent as aluminum added 1.3 percent. New Zealand’s dollar led gains among higher-yielding currencies. Spanish 10-year yields dropped for the first time in three days. Spain’s Prime Minister Mariano Rajoy has committed to cutting the deficit by at least 18 billion euros ($23.2 billion) next year, defying demonstrators who fought with police in Madrid this week. Chinese stocks surged after Shanghai Securities News, operated by the Xinhua News Agency, said there was speculation the government would announce market-boosting measures. The U.S. Commerce Department will report the biggest drop in orders for durable goods since January 2009, according to economists surveyed by Bloomberg. “Equities have rallied and commodity prices are higher,� said Peter Frank, a currency strategist at Banco Bilbao Vizcaya Argentaria SA in London. “The market is waiting to see what slippage there is relative to Spain’s targets and if the slippage is small, then that’s good news.� China Speculation The Shanghai Composite rallied 2.6 percent and the CSI 300 rose 3.1 percent. China’s central bank added a net 365 billion yuan ($58 billion) to the financial system this week, the highest in Bloomberg data going back to 2008, as cash demand rose before a weeklong holiday next week. The Stoxx Europe 600 Index (SXXP) climbed 0.5 percent, rebounding from yesterday’s 1.8 percent tumble. Opap SA rallied 4.4 percent as Greece called a tender to sell a 33 percent stake in the country’s biggest gambling company. Hennes & Mauritz AB declined 5.8 percent after Europe’s second-largest clothing retailer reported third-quarter profit that missed analysts’ estimates. The Stoxx 600 has climbed 8.3 percent since the end of June, on course for the biggest quarterly gain this year. Oil, Nickel The S&P GSCI rebounded after falling yesterday to the lowest since Aug. 6. Industrial metals led the gains, with nickel up 1.3 percent and zinc advancing 0.5 percent. China is the biggest buyer of industrial metals. Oil in New York climbed 1.1 percent to $90.96 a barrel. The cost of insuring European corporate debt fell for the first time in four days, tumbling from the highest in a month. The Markit iTraxx Crossover Index of credit-default swaps on 50 mostly junk-rated companies dropped 14 basis points to 566, heading for a fourth monthly decline. The euro was little changed at $1.2865, while the dollar traded at 77.68 yen. New Zealand’s dollar appreciated 0.5 percent to 82.86 U.S. cents. Spain’s 10-year bond yield dropped 12 basis points to 5.95 percent. The rate on similar-maturity U.S. Treasuries climbed three basis points to 1.64 percent. An increase in S&P 500 futures indicated the U.S. gauge will snap the longest losing streak since July. The index has erased all its gains since the Federal Reserve said Sept. 13 that it will undertake a third round of so-called quantitative easing and probably hold the federal funds rate near zero until at least the middle of 2015. The Commerce Department will provide its report on orders for U.S. durable goods at 8:30 a.m. in Washington. Orders decreased 5 percent, the most since January 2009, according to the median estimate of 79 economists. Other data are forecast to show pending home sales increased in August while initial claims for jobless benefits declined last week. To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net; Paul Dobson in London at pdobson2@bloomberg.net To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

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