By Stephen Kirkland Aug. 12 (Bloomberg) -- European stocks rebounded from the biggest drop in more than a month and U.S. index futures fluctuated between gains and losses. The yen recovered earlier losses against the dollar, oil declined and wheat rose. The Stoxx Europe 600 Index gained 0.4 percent at 6:57 a.m. in New York, after yesterday’s 2 percent tumble. Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent. The yen rebounded against the dollar after Japan’s Finance Minister Yoshihiko Noda declined to comment at a press conference in Tokyo on intervention to counter the currency’s strength. Oil dropped below $77 a barrel, and wheat jumped 2.1 percent. This week’s selloff in equities has pushed the value of the Stoxx 600 to about 14 times reported earnings of its companies, the lowest level since 2008, according to data compiled by Bloomberg. Comments from the Federal Reserve this week fueled speculation that central banks will tackle a faltering global recovery by increasing stimulus measures. Initial jobless claims probably eased last week after reaching a three-month high, a Bloomberg survey showed. “One can only assume that the Fed is looking at all its options in order to try and provide further stimulus to the economy if it is necessary to do so,” Gary Jenkins, head of credit strategy at Evolution Securities Ltd. in London, wrote in a report. AB InBev, Cairn The Stoxx 600 rose for the first time in three days. Anheuser-Busch InBev NV, the world’s largest brewer, led a rally in food and beverage stocks, climbing 4.9 percent after profit beat estimates. Cairn Energy Plc rose 3 percent after people with knowledge of the matter said Vedanta Resources Plc is in talks to buy assets or take a multibillion-dollar stake in the company. Dana Petroleum Plc tumbled 8.9 percent after saying it can’t recommend a takeover bid from Korea National Oil Corp. The MSCI Asia Pacific Index tumbled 1.1 percent, tracking yesterday’s declines in Europe and the U.S., and dragging the Nikkei 225 Stock Average briefly into a bear market. Nintendo Co. and Sony Corp., which get more than 70 percent of their sales from abroad, slumped at least 1.6 percent. The MSCI Emerging Markets Index lost 0.9 percent, bringing the three-day retreat to 4.2 percent, the deepest sell-off since July 1. Cisco, EBay U.S. futures fluctuated following yesterday’s 2.8 percent plunge in the S&P 500. Cisco Systems Inc., the largest maker of networking equipment, fell 7.4 percent in pre-market trading after forecasting sales that missed analysts’ estimates. EBay Inc. rose 1.6 percent after Citigroup Inc. advised buying shares of the Internet auctioneer. Initial jobless claims probably slipped to 465,000 in the week ended Aug. 7 from 479,000 in the previous period, according to a Bloomberg survey of 42 economists. The July 31 number was the highest since April and exceeded the most bearish estimate of economists. Today’s report from the Labor Department is due at 8:30 a.m. in Washington. The yen was little changed at 85.34 per dollar, after weakening to 85.80, as Noda didn’t elaborate on what measures Japan may take on its currency. It appreciated yesterday to 84.73 per dollar, the strongest level since July 1995. The Swiss franc extended gains against the euro after the European Union said the region’s industrial output unexpectedly declined in June. Greece’s economy shrank 1.5 percent in second quarter, more than forecast, and unemployment unexpectedly rose in May, reports showed today. U.S. Treasuries Treasury two-year note yields were at 0.52 percent, after falling yesterday to a record 0.4892 percent. The U.S. sells $16 billion of 30-year bonds, the last of three auctions this week totaling $74 billion. Ireland’s borrowing costs rose at an auction of 1 billion euros ($1.28 billion) of six- and eight- month bills. Crude oil dropped for a third day, losing as much as 1.4 percent to $76.42 in electronic trading on the New York Mercantile Exchange. Nickel fell 1.6 percent on the London Metal Exchange. Wheat futures for December delivery rose 15 cents to $7.40 a bushel on the Chicago Board of Trade, the first increase in a week before the U.S. Department of Agriculture’s first assessment of global production and trade since Russia announced an export ban last week, sending futures to a 23-month high. The USDA’s crop report is due at 1:30 p.m. London time. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net

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