By David Merritt and Adria Cimino June 4 (Bloomberg) -- Stocks in Europe advanced for a fifth day and U.S. index futures rose on speculation the U.S. payrolls report will show the world’s largest economy is gaining momentum. The yen and dollar weakened, while copper advanced. The benchmark Stoxx Europe 600 Index added 0.8 percent at 10:22 a.m. in London, led by a rally in BP Plc. Futures on the Standard & Poor’s 500 Index increased 0.2 percent. The yen depreciated against all but two of its 16 biggest counterparts. The dollar declined versus 12. Hungary’s forint strengthened 0.7 percent against the euro after yesterday’s 2.2 percent tumble. Copper advanced for the first time in five days. U.S. employers probably added 536,000 jobs in May, the fifth consecutive month of gains and the most since 1983, providing households with the incomes needed to maintain spending and the economic recovery, economists said before the the Labor Department report. Kansas City Federal Reserve Bank President Thomas Hoenig said the U.S. economy has the momentum to sustain itself and called for an increase in the federal funds rate to 1 percent by the end of the summer. “If the number is above 500,000, that’s enormous and will be excellent,” said Jacques Porta, a fund manager at Ofi Patrimoine in Paris, which oversees about $425 million in stocks. “Even if it’s less, what I want is a number that confirms that the employment market is in the positive and taking off.” BP, Total More than four shares rose for each one that fell on the Stoxx 600, which recorded its longest stretch of gains for two months. BP, which has slumped more than 30 percent since the Deepwater Horizon drilling rig exploded on April 20, rallied 3 percent in London as the company lowered a cap over the damaged Gulf of Mexico oil well. Total SA, Europe’s biggest refiner, gained 1.4 percent in Paris. Valeo SA, France’s second-largest auto-parts supplier, surged 6 percent after saying it’s working on options to yield the “highest possible value.” The MSCI World Index of stocks in 24 developed nations rose 0.2 percent while most shares in Asia fell, sending the MSCI Asia Pacific Index down 0.3 percent. Mining companies declined in Asia after the world’s two largest copper producers, Codelco and Freeport-McMoran Copper & Gold Inc., said China’s plans to curb growth will lower demand for the metal. Baoshan Iron & Steel Co. fell 1.1 percent after Shanghai Securities News said the company will cut prices. Hynix Semiconductor Inc. rallied 6 percent in Seoul on a credit-rating upgrade and higher memory- chip prices. U.S. Stocks The gain in U.S. futures indicated the S&P 500 may rise for a third day. The benchmark gauge has declined 9.4 percent from this year’s high on April 23 as the sovereign-debt crisis in Europe and slowing growth in China threatened to derail the global economic recovery. The projected increase in U.S. employment reflects a jump in government hiring of temporary help for the census and a 180,000 rise in private employment, the survey showed. Economists also project the jobless rate fell. The gain would be the biggest since a 1.11 million increase in September 1983, adding to evidence record low interest rates and stimulus measures are reviving the economy and helping to offset concern that European governments may be unable to pay debts. The cost of insuring against default on European sovereign debt rose. The Markit iTraxx SovX Index of credit-default swaps on 15 governments climbed four basis points to 157.5, approaching the record 167 set May 6. Yen, Forint The yen declined 0.5 percent against the euro and 0.1 percent versus the dollar. The U.S. currency slid 0.5 percent compared with the euro. Higher-yielding currencies appreciated the most, with the South African rand strengthening 0.9 percent against the yen and 0.8 percent versus the dollar. The forint rallied to 279.97 per euro after BNP Paribas SA advised buying the Hungarian currency and said a ruling party official’s comment yesterday comparing the country to Greece “seems exaggerated.” The forint weakened the most among world currencies yesterday after Lajos Kosa of the Fidesz party was quoted by news website Napi.hu as saying Hungary has a “slim chance to avoid the Greek situation.” Russia’s Micex Index advanced 1.9 percent, the biggest gain among equity gauges in major emerging markets, as oil traded above $74 a barrel. Copper for delivery in three months rose 1.3 percent to $6,608 a metric ton on the London Metal Exchange. Aluminum advanced 1.2 percent to $1,978 a ton. Raw sugar gained for a second day, adding 1 percent to 14.13 cents a pound in New York. Government bonds were little changed, with the yield on the 10-year Treasury at 3.37 percent. The yield on the German bund, Europe’s benchmark government debt security, stayed at 2.66 percent. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net

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