Industrial metals and European stocks rose as China’s manufacturing rebounded and results from British Sky Broadcasting Group Plc and Lloyds Banking Group Plc beat estimates. The yen fell and Treasuries snapped a three-day gain. Copper increased 0.7 percent at 10 a.m. in London and lead advanced 1.6 percent. The Stoxx Europe 600 Index added 0.2 percent, paring gains of as much as 0.4 percent. Shares in Shanghai rallied the most in three weeks, while Standard & Poor’s 500 Index (SPX) futures retreated 0.4 percent. The yen declined against all but one of its 16 major peers. Treasury 10-year note yields climbed two basis points to 1.71 percent. The pound strengthened after U.K. house prices rebounded in October. A Chinese purchasing manager’s index climbed to 50.2 in October, a sign growth is picking up after a seven-quarter slowdown. BskyB, the U.K.’s biggest pay-television provider, said operating profit rose and Lloyds, Britain’s largest mortgage lender, posted higher pretax profit. U.S. factory output probably grew at a slower pace in October, while construction spending rebounded in September, economists said before reports today. “Market sentiment was boosted by China’s PMI data which signaled that demand remains steady,� said Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co. in Seoul. BSkyB jumped 3.5 percent after and Lloyds climbed 3.2 percent. BT Group climbed 6.1 percent as the U.K.’s biggest fixed-line phone company kept its full-year profit target and boosted its dividend. Corporate Risk The cost of insuring against default on corporate debt fell, with the Markit iTraxx Europe index of credit-default swaps linked to 125 investment grade companies declining one basis point to 129 basis points. The drop in S&P 500 futures indicated the U.S. gauge will erase yesterday’s increase. The Institute for Supply Management’s U.S. factory index was probably at 51 last month from 51.5 in September, according to the median estimate of 88 economists surveyed by Bloomberg News before the report at 10 a.m. New York time. A Commerce Department report at the same time will show construction spending climbed 0.7 percent in September after a 0.6 percent decrease, a separate survey showed. Other data may show 370,000 Americans filed claims for jobless benefits last week, up from 369,000 the prior period. U.S. Payrolls The U.S. jobless rate probably increased to 7.9 percent in October from 7.8 percent in September, a Bloomberg survey of economists showed before a Labor Department report tomorrow. It will be the last of the monthly employment reports before Barack Obama and Mitt Romney face off in the Nov. 6 presidential election. The pound appreciated versus all 16 of its major peers, climbing 0.2 percent to $1.6154 and 0.4 percent to 80.07 pence per euro. The 17-nation shared currency slipped 0.2 percent to $1.2937. The yen depreciated 0.3 percent to 79.97 per dollar. U.K. government bonds dropped, pushing the yield three basis points higher to 1.89 percent. The cost of a British home increased 0.6 percent in October from the previous month, Nationwide Building Society said. The nation’s biggest business lobby raised its economic forecasts for this year and next. Lead, used in car batteries, climbed for a third day. Palladium, used in catalytic converters to remove harmful vehicle exhausts, rose 1.8 percent. The S&P GSCI gauge of 24 commodities gained 0.2 percent. The MSCI Emerging Markets Index (MXEF) advanced less than 0.1 percent. The Shanghai Composite Index (SHCOMP) added 1.7 percent, the most since Oct. 9. The Hang Seng China Enterprises Index (HSCEI) of mainland companies rose 1.1 percent. Russia’s Micex Index lost 0.1 percent while India’s Sensex index increased less than 0.1 percent. South Korea’s Kospi index fell 0.7 percent. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Richard Frost in Hong Kong at rfrost4@bloomberg.net; To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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