The euro declined against most of its peers and commodities fell as concern that the global economy is weakening offset China reporting better-than-expected export data. The dollar strengthened. The Standard & Poor’s GSCI gauge of 24 raw materials dropped 0.4 percent to the lowest in a week as of 8:08 a.m. in London, as oil retreated 0.6 percent in New York and soybeans in Chicago slipped 1.4 percent. The euro weakened 0.2 percent to $1.2927 while the Dollar Index gained 0.2 percent in its first increase in four days. The Stoxx Europe 600 Index rose 0.2 percent and S&P 500 Index futures climbed 0.2 percent. Bank of Israel Governor Stanley Fischer said the world is “awfully close� to a recession, adding to concern raised at annual meetings of the International Monetary Fund last week. While China’s exports grew more than expected last month, overseas shipments to the European Union fell for a fourth straight month, according to customs data. Consumer prices in the world’s second-biggest economy increased 1.9 percent last month from a year earlier, close to the slowest pace in two years and matching the median estimate of 34 economists in a Bloomberg News survey. “The European situation continues to drag down the global economy,� said Kiyoshi Ishigane, a Tokyo-based strategist at Mitsubishi UFJ Asset Management Co., which oversees about $70 billion. “Even China’s improved trade data was negative toward the EU area.� U.S. Retail EU leaders will meet in Brussels on Oct. 18-19 as Greece seeks to justify renewed aid and Spain holds off from asking for a bailout. China’s exports to the European Union fell 10.7 percent in September, according to the Beijing-based General Administration of Customs. China also reported over the weekend M2, the broadest measure of money supply, climbed 14.8 percent last month. The economy probably grew 7.4 percent in the third quarter from a year earlier, the weakest expansion since the first quarter of 2009, according to a median forecast in a Bloomberg survey ahead of the report due on Oct. 18. The greenback gained against most of its 16 major peers. Data due later today may show retail sales expanded in September on improving demand for automobiles and a final rush of back-to- school shopping. The euro slid before the ZEW Center for European Economic Research releases its index of expectations among German investors and analysts. The gauge was at minus 14.9 this month from minus 18.2 in September, according to the median estimate of economists in a Bloomberg News survey before the report is released tomorrow. Management Confidence Confidence among European chief executive officers is declining to the lowest level since the financial crisis, based on share repurchases falling to a three-year low and the disappearance of mergers and acquisitions. Oil fell for a second day in New York to $91.39 a barrel after Iran reiterated an offer to suspend domestic production of medium-enriched uranium before European leaders meet to discuss tighter sanctions on the Persian Gulf country. Iran is ready to enter talks about its nuclear program in exchange for guaranteed supplies of 20 percent-enriched uranium for its Tehran Research Reactor, said Ramin Mehmanparast, a Foreign Ministry spokesman, according to a report by Press TV yesterday. Softbank, ZTE Soybeans dropped below $15 a bushel for the first time since July after investors reduced bets on a price advance amid signs of slowing demand for U.S. exports. Corn fell 1.2 percent. The MSCI Asia Pacific Index decreased as much as 0.3 percent led by Softbank Corp. (9984), before trading little changed. Japan’s third-largest mobile-phone company slid as much as 8.1 percent, extending a 17 percent decline on Oct. 12, as three people familiar with talks said the company is near an agreement to buy a 70 percent stake in Sprint Nextel Corp. (S) ZTE Corp. China’s second-largest maker of telephone equipment fell the most in four years in Hong Kong trading after the company said it probably posted a loss for the third quarter. ZTE dropped as much as 17.2 percent, before trading 15.3 percent lower at HK$10.62. BHP Billiton Ltd. (BHP), Australia’s biggest mining company, lost 0.6 percent. Japanese carmakers Honda Motor Co. and Toyota Motor Corp. gained at least 2 percent in Tokyo. To contact Bloomberg News staff for this story: Chua Baizhen in Singapore at bchua14@bloomberg.net To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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