Stocks rose with U.S. equity-index futures, while government bonds dropped and the yen weakened. The U.K. pound declined after the Bank of England cut its forecast for wage growth. The Stoxx Europe 600 Index advanced 0.3 percent at 11:15 a.m. in London, while Standard & Poor’s 500 Index futures gained 0.4 percent. Yields on 10-year Treasuries and German bonds climbed. The yen fell for a third day against the dollar, while the pound weakened versus all 16 of its major counterparts. Copper dropped 0.7 percent and zinc declined 1.2 percent after China’s factory output increased less than analysts forecast. European stocks advanced as earnings reports from E.ON SE (EOAN) and Swiss Life Holdings AG beat analysts’ estimates. Bank of England Governor Mark Carney said increases in interest rates will be gradual as he seeks to balance a strengthening economy with below-target inflation. Ukraine pledged to block entry to trucks Russia says are loaded with humanitarian aid for rebel-held areas. The U.S. will sell $24 billion of 10-year notes today. “There is a lot of confidence that in most of the world, outside Russia, the economy is getting better,� Dirk Thiels, head of investment management at KBC Asset Management NV, said by phone from Brussels. “There is some noticeable improvement and there is no reason why this shouldn’t continue.� The Stoxx 600 advanced today, with banks and utilities rallying the most among 19 industry groups in the gauge. German utility E.ON climbed 4.1 percent after it posted first-half profit that exceeded analysts’ estimates. Meda, Glencore Swiss Life Holding AG advanced 5.4 percent after Switzerland’s biggest life insurer said it will buy German real estate asset manager Corpus Sireo. It also reported an increase in first-half earnings. Meda AB lost 9 percent after the Swedish drugmaker posted second-quarter earnings that missed analysts’ projections. Glencore Plc slid 2.8 percent after the world’s third-biggest mining company by market value said zinc and lead output fell. The volume of Stoxx 600 shares changing hands today was 21 percent lower than the 30-day average, according to data compiled by Bloomberg. Futures (SPX) on the S&P 500 expiring in September advanced today after the index slipped 0.2 percent yesterday. The gauge has fallen 2.7 percent from a record high last month. Cisco Systems Inc., Deere & Co., Macy’s Inc. and NetApp Inc. are reporting earnings today. About 75 percent of S&P 500 companies that have posted results this season have beaten analysts’ estimates for profit, according to data compiled by Bloomberg. Bonds Decline Industrial output in the 18-nation euro area fell 0.3 in June from a month earlier. Eurostat’s measure of production dropped 1.1 percent in May, its biggest decline since September 2012. Declines in government bonds pushed Treasury 10-year yields to 2.46 percent after they fell to 2.35 percent on Aug. 8, the lowest rate since June 2013. In Germany, which auctioned 4 billion euros ($5.3 billion) of 2024 securities today, the 10-year yield rose one basis points to 1.07 percent. It touched a record-low 1.023 percent on Aug. 8. The pound weakened 0.4 percent to 79.85 pence per euro, while yields on 10-year gilts rose one basis point to 2.50 percent. While central bank Governor Mark Carney said in a June speech at Mansion House that the BOE may raise its key interest rate from a record earlier than investors expected, he since softened that stance. Yen, Ruble The yen weakened 0.2 percent to 102.44 per dollar amid reduced demand for haven assets. The Australian dollar advanced for a second day against the dollar after Westpac Banking Corp. and the Melbourne Institute said their index of consumer sentiment for August rose to the highest since April. The ruble weakened to 36.27 per dollar. The International Committee of the Red Cross asked for clarification from Russia over their humanitarian mission. The government in Moscow said 280 trucks were headed for the border with Ukraine filled with donated food, medicine and water. Ukraine said it’s concerned the convoy is carrying military equipment to aid pro-Russia separatists in the country’s east, and indicated it won’t let the trucks in. Protection ‘Pretext’ “The Russian aid mission raises the prospect of incidents -- calculated or accidental -- that could further escalate the crisis by enabling Moscow to argue that Ukrainian and international organizations are unwilling or unable to provide adequate security,� New York-based Eurasia Group analyst Alexander Kliment said in an e-mail. “This logic would then lead Russia to insert troops under the pretext of protecting aid workers.� Chinese shares were little changed in Shanghai, while the Hang Seng China Enterprises Index climbed 1.2 percent in Hong Kong. New-lending, retail-sales, home-sales and industrial-production data signaled the world’s second-largest economy is slowing. China’s new yuan loans came in at 385 billion yuan, less than half the estimate for a 780 billion yuan increase. Home sales fell 28 percent in July, the biggest monthly decline this year, as tight mortgage lending outweighed efforts by local governments to promote sales. Yuan-denominated deposits fell by a record 1.98 trillion yuan to 111.62 trillion yuan from the previous month, the central bank said today. That’s the biggest monthly decline in figures dating back to 2000. Retail sales climbed 12.2 percent in July from a year earlier and industrial-production growth slowed to 9 percent. Both series missed estimates. The Bloomberg Commodity Index of 22 raw materials dropped as much as 0.2 percent to the lowest since Feb. 4. Copper fell for a second day to $6,916.50 a metric ton and zinc slipped to $2,301.25 a ton. Brent oil declined 0.3 percent to $102.74 a barrel. China is the biggest buyer of industrial metals and largest energy consumer. To contact the reporters on this story: Nick Gentle in Hong Kong at ngentle2@bloomberg.net; Shelley Smith in London at ssmith118@bloomberg.net To contact the editors responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net Shelley Smith

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