By Stephen Kirkland Aug. 17 (Bloomberg) -- Stocks in Europe rose the most in a week and U.S. index futures advanced as earnings beat analysts’ estimates and investors bet America’s industrial output and housing starts increased. Copper climbed while Treasuries and bunds fell. The Stoxx Europe 600 Index added 0.7 percent at 7:20 a.m. in New York, extending gains as fertilizer makers rallied after Potash Corp. of Saskatchewan Inc. rejected a takeover bid. Standard & Poor’s 500 Index futures rose 0.7 percent, and the MSCI Emerging Markets Index advanced 0.5 percent. Copper jumped 1.4 percent. The yield on the 10-year Treasury note gained five basis points to 2.62 percent. Carlsberg A/S, the Nordic region’s biggest brewer, and Wal- Mart Stores Inc. of the U.S. increased their earnings forecasts. About 56 percent of companies on the Stoxx 600 that have reported earnings since July 12 have topped estimates, according to data compiled by Bloomberg. American industrial production and housing starts probably rose in July, economists said before reports today. The global economic recovery is “well in place,” Mark Mobius, who oversees about $34 billion as executive chairman of Templeton Asset Management Ltd.’s emerging markets group in Singapore, said in a Bloomberg Television interview. “Going forward, the numbers will get better and better.” More than 10 shares rose for every one that fell in the Stoxx 600. Copenhagen-based Carlsberg gained 2.2 percent. Wienerberger AG, the world’s biggest brickmaker, rallied 7.7 percent after reporting its first profit in six quarters. Takeover Bid K+S AG, Europe’s largest potash producer, and Yara International ASA climbed more than 4.5 percent. Potash Corp., the world’s largest fertilizer producer by market value, jumped 19 percent to $133.74 in pre-market trading after saying its board rejected an unsolicited takeover proposal from BHP Billiton Ltd. for $130 a share in cash. German investor confidence dropped more than forecast to a 16-month low in August, suggesting economic growth will slow. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to 14 from 21.2 in July. Economists had forecast a drop to 20, according to the median of 33 estimates in a Bloomberg News survey. The increase in U.S. futures indicated the S&P 500 may advance after yesterday closing little changed. Home Depot Inc. had second-quarter profit of 72 cents a share. Analysts surveyed by Bloomberg had estimated profit of 71 cents on average. Wal- Mart said it will earn $3.95 a share to $4.05 this year. The company had seen profit of $3.90 to $4. Analysts surveyed by Bloomberg had estimated profit of $4.01 on average. Output, Homebuilding American manufacturing output increased 0.5 percent, according to the median estimate of 73 economists surveyed by Bloomberg News. Housing starts climbed to a 560,000 annual rate last month from 549,000 in June, according to the survey median. The production figures are scheduled for release at 9:15 a.m. in Washington, while the homebuilding report is due at 8:30 a.m. Emerging-market stocks rose for a third day. The Karachi Stock Exchange 100 Index jumped 1.5 percent, the most in a month, after Mobius said he was buying shares in Pakistan as the nation’s worst-ever floods prompted a sell-off. Hungary’s BUX index climbed 0.8 percent. Mol Nyrt., the nation’s biggest oil refiner, said operating profit doubled. The MSCI Asia Pacific Index rose 0.4 percent. The Nikkei 225 Stock Average fell 0.4 percent after Prime Minister Naoto Kan asked ministers for stimulus proposals, spurring concern Japan’s growth is slowing. Treasuries The yield on the two-year Treasury note added two basis points to 0.52 percent and the 30-year bond yield increased five basis points to 3.76 percent. China cut its holdings of Treasury notes and bonds by the most ever, a U.S. government report showed yesterday. Holdings fell by $21.2 billion in June to $839.7 billion, according to the report. The yield on the German bund climbed three basis points to 2.36 percent. The yield premium investors demand to hold Spain’s 10-year debt over comparable German bonds fell to 182 basis points after Spain sold 5.5 billion euros ($7.1 billion) of bills. The Swiss franc weakened against all 16 of its most-traded peers, depreciating 0.6 percent to 1.3408 per euro. The yen declined 0.5 percent to 110.01 per euro, while the dollar dropped 0.6 percent to $1.2903 against the 16-nation currency. Copper rose for a second day, and zinc jumped 2.3 percent on the London Metal Exchange. Crude oil for September delivery increased 1.2 percent to $76.14 a barrel on the New York Mercantile Exchange, the first advance in six sessions. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net

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