(Bloomberg) -- European stocks rose with bonds from Italy and Spain after the region’s manufacturing exceeded initial estimates. Oil dropped as nuclear talks between world powers and Iran continued after Tuesday’s self-imposed deadline. The Stoxx Europe 600 Index climbed 0.5 percent by 7:37 a.m. in New York. Standard & Poor’s 500 Index futures fell 0.4 percent, resuming declines after climbing back from an earlier selloff. Chinese shares in Hong Kong advanced as manufacturing unexpectedly expanded, while Nigerian bonds rose to a four-month high following presidential elections. The yield on 10-year Italian bonds fell three basis points to 1.25 percent and Spain’s two-year note rate fell to a record 0.015 percent. Oil in New York slid 0.7 percent to $47.27 a barrel and iron ore slumped below $50 a metric ton to a 10-year low. Euro-area manufacturing expanded faster than forecast last month, helped by growth in Spain and Italy and a stronger performance in Germany. The value of global stocks climbed to a record last quarter as the Federal Reserve cut its outlook for interest rates and central banks from Europe to Asia boosted stimulus. “Data in Europe keeps on surprising us, and stronger growth is precisely what will drive markets higher from here,� Didier Duret, who oversees 165 million euros ($177 million) as chief investment officer of ABN Amro Bank NV’s wealth-management unit. “The economic landscape will continue to improve as all the positive shocks from the first quarter -- the ECB, the low euro and low oil prices -- start feeding into the recovery now.� Banks and drugmakers led gains in the Stoxx 600 after the index posted its best first-quarter rally since 1998. Barclays Climbs Barclays Plc rose 3.1 percent after Morgan Stanley said it’s a preferred financial stock. Barry Callebaut AG jumped 9.5 percent after reporting first-half earnings that beat analysts’ estimates. Asos Plc climbed 4.1 percent after saying it’s confident in the outlook for the second half of the year. U.S. futures lost more than 1 percent during an hour-long lurch during Asian hours. After opening about 0.1 percent lower Wednesday, June contracts on the S&P 500 dropped from about 2,060 to a low of 2,033.5 that climaxed in an 11.75-point slump over two minutes. More than 13,500 contracts changed hands in that span. American employers probably added more jobs in March than in the previous month, while a factory gauge slipped for a fifth month, economists said before data from the ADP Research Institute and the Institute for Supply Management. “This is going to be a tougher quarter and you can expect higher volatility,� said Nader Naeimi, who helps manage about $118 billion as the Sydney-based head of dynamic asset allocation at AMP Capital Investors. “We have raised cash levels and now have less in equities than in the past year. You need to have some powder dry to buy into the market if we have a correction.� Emerging Markets The MSCI Emerging Markets Index advanced for a third day, adding 0.2 percent, after capping the best first quarter since 2012. The Hang Seng China Enterprises Index of Chinese stocks listed in Hong Kong climbed 1.6 percent and the Shanghai Composite Index rose 1.7 percent to the highest close since March 2008. The government’s manufacturing Purchasing Managers’ Index was 50.1 last month, from 49.9 in February, according to the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. Numbers above 50 signal expansion. The final PMI from HSBC Holdings Plc and Markit Economics for March was 49.6, up from the flash reading of 49.2. Nigeria’s $500 million of Eurobonds due in July 2023 advanced for the 11th day, pushing the yield down 19 basis points to 6.01 percent. The benchmark stock gauge jumped 7.8 percent, the most since September 2010. Former military ruler Muhammadu Buhari won the presidency, beating Goodluck Jonathan in the first defeat of an incumbent since independence from the U.K. in 1960 in a largely peaceful vote. Gilts Drop Germany’s 10-year yield was little changed at 0.19 percent. U.K. gilts fell on Wednesday, sending the 10-year yield three basis points higher to 1.60 percent. Greek 30-year bonds were little changed, with the yield at 8.97 percent and the price at 47.745 percent of face value. Markets are too pessimistic on Greece and long-term investors should buy the securities, JPMorgan Chase & Co. strategists Nikolaos Panigirtzoglou and Aditya Chordia wrote in a in client note dated Tuesday. Credit-default swaps insuring against losses on $10 million of Greek debt for five years cost $4.7 million upfront and $100,000 annually, signaling a 75 percent probability of default, according to CMA. That’s up from $3.6 million in advance and a 63 percent chance of default at the start the year. Corporate Debt Average yields on investment-grade corporate bonds in euros fell for a fifth day, declining to 0.92 percent Tuesday from 0.96 percent March 24, according to Bank of America Merrill Lynch Index data. Treasury 10-year notes declined for the first time in four days. U.S. government securities have advanced in each April from 2010 to 2014, according to data compiled by Bloomberg. The Bloomberg Dollar Spot Index was little changed after four days of gains. Brent crude, the benchmark contract for more than half of global oil, dropped 0.5 percent to $54.86 a barrel in London. Russian Foreign Minister Sergei Lavrov and his Iranian counterpart, Mohammad Javad Zarif, said late Tuesday that negotiators had reached consensus on major points and expect to start drafting a statement later today. U.K. Foreign Secretary Philip Hammond said the sides had a “broad framework of understanding� with some key issues still left to resolve “during the course of the day.� The Bloomberg Commodity Index increased as much as 0.4 percent as metals rallied after the China factory data. Nickel for three-month delivery on the London Metal Exchange rose as much as 1.4 percent. Iron ore with 62 percent content at Qingdao, China, retreated $1.82 to $49.53 a dry ton on Wednesday, according to Metal Bulletin Ltd., as surging low-cost supplies from Australia and Brazil swamp the global market. To contact the reporters on this story: Nick Gentle in Hong Kong at ngentle2@bloomberg.net; Stephen Kirkland in London at skirkland@bloomberg.net To contact the editors responsible for this story: Stephen Kirkland at skirkland@bloomberg.net; Stuart Wallace at swallace6@bloomberg.net Justin Carrigan

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