European stocks snapped the biggest four-day gain since 2008, while U.S. equity futures declined and Treasuries climbed before Spain and France sell debt. Copper retreated after Chinese manufacturing contracted. The Stoxx Europe 600 Index lost 0.7 percent as of 8:50 a.m. in London, halting a four-day, 9.1 percent jump. Standard & Poor’s 500 futures slid 0.7 percent, following the stock gauge’s 4.3 percent surge yesterday. The euro weakened to $1.3431. Treasuries halted a four-day drop. China’s interest-rate swaps sank to the lowest level in a year. Copper slumped 1.4 percent and crude traded above $100 a barrel in New York. Spain and France auction 8.25 billion euros ($11.1 billion) of bonds today as efforts to strengthen the region’s firewalls against contagion failed to rein in surging borrowing costs. European Central Bank President Mario Draghi said the bank’s program of buying government bonds “can only be limited,� a day after six central banks made additional funds available to ease strains from the crisis and the People’s Bank of China cut banks’ reserve requirements for the first time since 2008. “There are some good things happening but the key ingredient remains Europe and what happens there,� David Joy, the Boston-based chief market strategist at Ameriprise Financial Inc., said in a Bloomberg Television interview. “We’re going to have to see follow through at the European Union summit at the end of next week.� Debt Sales More than six shares declined for every one that gained on the Stoxx 600. Eighteen of its 19 industry groups fell. The ECB holds its next policy meeting on Dec. 8, and regional heads of government will meet the following day in Brussels. Spain is selling as much as 3.75 billion euros of notes as the extra yield on its 10-year bonds compared with benchmark German bunds was at 396 basis points today. France, rated AAA, is auctioning as much as 4.5 billion euros of debt as its 10- year securities yielded 112 basis points more than comparable German debt. Futures signal the S&P 500 will halt its steepest three-day rally since March 2009. The gauge jumped yesterday after the Federal Reserve said in a statement the premium banks pay to borrow dollars overnight from central banks will fall by half a percentage point to 50 basis points. The so-called dollar swap lines will be extended by six months to Feb. 1, 2013. Treasury 10-year yields increased eight basis points to 2.07 percent yesterday. The rate fell to 2.05 percent today. The Fed said in its Beige Book survey yesterday the economy expanded at a “moderate� pace in 11 of 12 districts, led by gains in manufacturing and consumer spending. The government is scheduled to release payroll figures for November tomorrow. China’s Economy Three-month copper decreased as much as 1.6 percent to $7,760 a metric ton on the London Metal Exchange, after prices surged 5.3 percent yesterday, the most since Oct. 27. Zinc slumped 2.1 percent, the first retreat in five days, while aluminum declined 1.2 percent. The People’s Bank of China yesterday said reserve ratios will decline by 50 basis points effective Dec. 5. The move may add 350 billion yuan ($55 billion) to the financial system, according to UBS AG. The Purchasing Managers’ Index fell to 49.0 in November from the previous month’s 50.4, the China Federation of Logistics and Purchasing said today. The median estimate in a Bloomberg News economist survey was 49.8. A level above 50 indicates expansion. China’s Shanghai Composite Index (SHCOMP) rose 2.3 percent and Hong Kong’s Hang Seng Index surged 5.6 percent. The yuan appreciated 0.19 percent to 6.3670 and China’s one-year swap contract, the fixed rate that can be exchanged for the floating seven-day repurchase rate, fell 19 basis points to 2.84 percent. To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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