April 23 (Bloomberg) -- European stocks rose for a third day, bond yields declined and the euro fell to a two-week low against the dollar as a contraction in manufacturing boosted speculation that the region’s central bank will be forced to cut interest rates. The yen strengthened while oil and copper slid. The Stoxx Europe 600 Index rose 1.5 percent at 7:25 a.m. in New York. Standard & Poor’s 500 Index futures added 0.2 percent, after declining as much as 0.5 percent. Ireland’s two-year note yield tumbled to a record-low 0.84 percent and Italy’s fell to an all-time low of 1.165 percent. Japan’s currency appreciated 0.6 percent to 98.65 per dollar while the euro erased gains, weakening to the lowest level since April 8 versus the dollar. Oil slid 0.7 percent and copper lost 1.2 percent. Euro-area services and factory output shrank for a 15th month in April, according to Markit Economics, increasing expectations the European Central Bank will have to step up efforts to revive the economy. An earlier report showed Chinese manufacturing slowed more than economists estimated. Apple Inc., the world’s most valuable technology company, is scheduled to report earnings after the close of U.S. markets today. “The data is sufficiently weak to up the pressure on the ECB to cut rates in June,� Lena Komileva, managing director and chief economist at G+ Economics Ltd., wrote in an e-mailed note. “With excess capacity growing and business expectations falling, the only question is why the ECB has not cut rates already.� ARM Rallies More than two shares advanced for everyone that declined in the Stoxx 600. ARM Holdings Plc, the designer of chips for Apple Inc.’s iPhone, rallied 7.5 percent after reporting sales jumped 29 percent. Cie. Financiere Richemont SA, the maker of Cartier jewelry, surged 5.5 percent after saying full-year net income increased 30 percent. Some 19 companies in the Stoxx 600 report earnings today, according to data compiled by Bloomberg. Of those that have posted results since April 8, about 57 percent have beaten analysts’ profit estimates, while 63 percent missed sales projections, data compiled by Bloomberg show. Apple was little changed in pre-market trading. The company’s quarterly profit is projected to fall 18 percent to $9.53 billion, or $10.02 a share, according to analysts’ estimates compiled by Bloomberg. Revenue may rise 8 percent to $42.4 billion, the slowest growth since 2009. Yum! Brands Inc. and United Technologies Corp. are also releasing earnings today. Of the 111 members of the S&P 500 that have reported so far this season, 73 percent beat analysts’ predictions on profits while about half trailed on sales, data compiled by Bloomberg show. Italy Bonds Italian 10-year government bonds yields fell below 4 percent for the first time since November 2010 and Portugal’s 10-year yield fell to 5.76 percent, the lowest since October 2010. Spain’s 10-year rate dropped 17 basis points to 4.32 percent, also the least since November 2010. The country’s recession eased in the first quarter, the Bank of Spain said. German 10-year yields fell to as low as 1.193 percent, the least since July, yields on similar-maturity U.K. gilts fell to 1.623 percent, the lowest since Sept. 5 and those on U.S. 10- year notes dropped to 1.64 percent, a level not seen since Dec. 12. The rate on similar-maturity French bonds dropped four basis points to a record 1.708 percent. The yen gained for a second day against the dollar and strengthened 1.1 percent per euro. The 17-nation shared currency slid 0.6 percent to $1.2994, reaching its lowest level since April 8. Sweden Jobs Sweden’s krona tumbled to its weakest level against the dollar since Dec. 18 after a report showed unemployment unexpectedly climbed in March. The MSCI Emerging Markets Index fell 0.5 percent. The Shanghai Composite Index declined 2.6 percent, the most in three weeks. The S&P GSCI gauge of 24 commodities dropped 0.6 percent. West Texas Intermediate oil retreated to $88.58 a barrel. Copper fell as much as 2.5 percent to $6,762.25 a metric ton, the lowest price since Oct. 20, 2011. = --With assistance from Claudia Carpenter, Paul Dobson, Lucy Meakin, Lars Paulsson, Andrew Rummer in London. Editors: Stephen Kirkland, Stuart Wallace To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; David Yong in Singapore at dyong@bloomberg.net To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net

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