The euro weakened, snapping a four- day gain versus the dollar, as the Bundesbank said Germany’s economy will probably lose growth momentum. Greek bonds slid on speculation the nation will have to reorganize its debt, while U.S. stock index futures fell after Gap Inc. (GPS) cut its forecast. The euro slipped against all 16 major peers, losing 0.4 percent against the dollar at 9:36 a.m. in New York. The yield on the Greek 10-year bond added 54 basis points, driving the difference with German bunds to a record 1,346 basis points. The Stoxx Europe 600 Index increased 0.2 percent. The Standard & Poor’s 500 Index lost 0.3 percent and the yield on the 10-year Treasury was little changed. Cocoa and wheat declined more than 1.3 percent to lead the S&P GSCI Index of commodities lower. Germany’s 1.5 percent growth rate in the first quarter “considerably overstates the underlying economic momentum,” the Frankfurt-based Bundesbank said. Greece may extend its debt maturities because it’s unlikely to regain market access for at least five years, economist Nouriel Roubini said yesterday. “Growth is likely to ease somewhat in the foreseeable future,” the Bundesbank said. First-quarter “output growth was clearly lifted during the reporting period by backloading and catching-up effects.” Federal Reserve Bank of Chicago President Charles Evans said yesterday “slow progress” in the economy justifies stimulus measures, while his New York counterpart, William C. Dudley, said it’s important not to “overreact” to inflation. Euro, Dollar The euro weakened to $1.4236 and dropped 0.4 percent versus the yen and 0.7 percent versus the Swiss franc. The Dollar Index rose 0.4 percent, trimming this week’s decline to 0.5 percent. The yield on Greek 10-year bonds surged 1.09 percentage points to 16.53 percent this week. The Portuguese 10-year yield increased eight basis points, sending the spread with benchmark German bunds 10 basis points wider. Irish 10-year bond yields rose six basis points, with similar-maturity Spanish yields seven basis points higher. The Stoxx 600 advanced for a third day. BP Plc (BP/) rallied 2.4 percent after saying it will receive $1.065 billion in a settlement with a unit of Mitsui & Co. over last year’s Gulf of Mexico spill. Micro Focus International Plc (MCRO) rose 6.7 percent after the Financial Times said Advent International Corp. approached the company about a takeover. “The environment is still positive for equities,” said Thomas Stucki, who helps manage about $3.8 billion as chief investment officer at Hyposwiss Private Bank in Zurich. “But as long as the U.S. economic data are weaker-than-expected, stock markets will be volatile and move sideways at best.” The S&P 500 halted a two-day advance and pared its first weekly gain of the month. Barnes & Noble Inc. (BKS) surged 30 percent as the bookstore chain received a takeover offer from John Malone’s Liberty Media Corp. Gap Inc. slid 16 percent after the largest U.S. apparel chain cut its profit forecast 22 percent as the cost of making clothes rose more than expected. The MSCI Emerging Markets Index rose 0.2 percent, paring earlier gains. India’s Bombay Stock Exchange Sensitive Index jumped 1 percent after Tata Power Co., the country’s largest non-state electricity utility, posted profit that beat analysts’ estimates. Russia’s Micex Index fell for the first time in three days, losing 1.2 percent. Crude oil slipped 0.2 percent to $98.26 a barrel after rising as high as $99.60. Copper gained 1 percent in London amid declining stockpiles in China and the U.S., the world’s biggest buyers of the metal. To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net

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