The euro declined for the first time in three days and gold rallied as Germany, Spain and Italy plan 21 billion euros ($26.8 billion) in debt sales. European equity futures retreated, while Asian shares advanced. The euro weakened 0.2 percent to $1.2748 as of 4:18 p.m. in Tokyo. Gold gained for a second day, increasing 0.7 percent. Euro Stoxx 50 Index futures lost 0.3 percent. Standard & Poor’s 500 Index futures fell 0.1 percent after the U.S. gauge closed at five-month high. Australia’s S&P/ASX 200 Index rallied 0.9 percent and the MSCI Asia Pacific Index gained 0.2 percent. Treasury 10-year yields held at 1.96 percent. Germany will auction 4 billion euros of five-year notes today, while Spain and Italy will sell as much as 17 billion in debt the following day. Greece is in final negotiations to persuade investors to forgive at least half of its debt, the euro area’s first large-scale restructuring. “We see Europe deteriorating this year with the economy moving formally into recession,� said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., Australia’s second-largest lender. “Over the next three months, the euro may drop to at least $1.20.� Malaysia’s exports grew at the slowest pace in four months in November as sales of electrical and electronic goods to the U.S. and Thailand fell, according to a trade ministry statement today. Economic data tomorrow may show industrial production in the euro region shrunk for a third month in November and China’s consumer prices increased 4 percent last month, based on the median economist estimate from surveys compiled by Bloomberg. S&P 500 Futures The Treasury will sell $66 billion in securities this week, including $21 billion of 10-year securities today and $13 billion in 30-year bonds tomorrow. The $32 billion three-year sale attracted bids for 3.73 times the amount of available debt yesterday, the most since at least 1993 when the government began releasing the data. S&P 500 futures expiring in March fell to 1,284.40 and Nasdaq 100 Index futures slid 0.2 percent. Microsoft Corp. (MSFT) shares may be active in U.S. trading. The world’s largest software maker said industrywide sales of personal computers will probably be lower than analysts projected in the fourth quarter because supply was hurt by flooding in Thailand. About five stocks rose for every four that fell in the MSCI Asia Pacific Index today. A measure of raw-materials producers in the Asia equity gauge increased 0.8 percent, the most among 10 industries. The Shanghai Composite Index (SHCOMP) fell 0.5 percent after surging 6.4 percent in the past three days. Japan’s Nikkei 225 Stock Average climbed 0.3 percent. Nomura, BHP Nomura Holdings Inc. (9604) climbed 3.2 percent. The resignation of two former Lehman Brothers Holdings Inc. executives spurred speculation that Japan’s biggest brokerage may be able to revamp a business that has stumbled since it bought assets of the failed U.S. firm in 2008. BHP Billiton Ltd., the world’s biggest mining company, climbed 1.5 percent in Australian trading as Rio Tinto Group (RIO) increased 1.6 percent. Aluminum prices may rise to a six-month high by the end of the quarter as processing companies replenish inventory to meet a rebound in demand, said Vedanta Resources Plc, India’s biggest producer. Aluminum was little changed at $2,163 a ton in London and zinc was down 0.7 percent at $1,916. Oil traded at $102.19 a barrel. Spot gold gained 0.7 percent to $1,643.19 an ounce. Holdings in exchange-traded products backed by the metal rose for a second day to 2,346.415 tons yesterday, data compiled by Bloomberg show. To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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