Stocks rose around the world and commodities rebounded from a seven-week low on speculation China’s government will do more to support economic growth. Treasuries ended their longest rally in almost four years, while the euro weakened. The MSCI All-Country World Index (MXWD) climbed 0.3 percent at 11:12 a.m. in London, and futures on the Standard & Poor’s 500 Index advanced 0.5 percent. The Shanghai Composite Index jumped the most in three weeks, while the S&P GSCI gauge of 24 commodities gained 0.3 percent as aluminum added 1.5 percent. The yield on 10-year Treasury notes rose two basis points to 1.63 percent. The euro fell against all its major peers. The Shanghai Securities News reported on speculation that the China Securities Regulatory Commission would announce 10 market-boosting measures today. In Madrid, Spanish protesters marched for a second night before the government presents a package of budget cuts. Orders for U.S. durable goods decreased 5 percent, the most since January 2009, according to the median estimate of 79 economists before the report is released. “The positive would be a big China stimulus package that could send markets higher,� said Andrew Pease, the Sydney-based chief investment strategist at Russell Investment Group, which manages about $150 billion. “The signals are that they are not really itching to do that.� China Speculation The Shanghai Composite rallied 2.6 percent and the CSI 300 rose 3.1 percent. CSRC news department official Zhang Xiaojun said he’s aware of the market talk and declined to comment further. China’s central bank added a net 365 billion yuan ($58 billion) to the financial system this week, the highest in Bloomberg data going back to 2008, as cash demand rose before a weeklong holiday next week. Baoshan Iron & Steel Co., the nation’s largest publicly traded steelmaker, rose 0.7 percent even as the company suspended production at a Chinese plant after demand dropped for slabs used to make ships and bridges. China is unlikely to introduce any large stimulus plans on infrastructure investment in the near term because economic development is already “unbalanced,� Zhang Dianbo, its assistant president, said at a conference today. The Stoxx Europe 600 Index (SXXP) climbed 0.5 percent, rebounding from yesterday’s 1.8 percent tumble. Opap SA rallied 3.5 percent as Greece called a tender to sell a 33 percent stake in the country’s biggest gambling company. Hennes & Mauritz AB declined 5.3 percent after Europe’s second-largest clothing retailer reported third-quarter profit that missed analysts’ estimates. The Stoxx 600 has climbed 8.3 percent since the end of June, on course for the biggest quarterly gain this year. Oil, Copper The S&P GSCI rebounded after falling yesterday to the lowest since Aug. 6. Industrial metals led the gains, with nickel up 1.2 percent and zinc advancing 0.6 percent. China is the biggest buyer of industrial metals. Oil in New York climbed 0.3 percent to $90.23 a barrel. The cost of insuring European corporate debt fell for the first time in four days, tumbling from the highest in a month. The Markit iTraxx Crossover Index of credit-default swaps on 50 mostly junk-rated companies dropped 11 basis points to 569, heading for a fourth monthly decline. The euro dropped 0.1 percent to $1.2856, sliding for a fourth day, as Spanish Prime Minister Mariano Rajoy meets ministers to approve a 2013 austerity budget. The dollar traded at 77.66 yen. New Zealand’s dollar and Korea’s won outperformed all their major peers. Italian Bonds Italian notes fell a sixth day, pushing the two-year yield five basis points higher to 2.50 percent, as demand dropped at a debt auction today. The exit of one or more member states from the euro won’t destroy the monetary union or the project of European integration, Czech President Vaclav Klaus said. An accord that paved the way to cut Ireland’s legacy bank debt won’t unravel, said Irish deputy prime minister Eamon Gilmore. An increase in S&P 500 futures indicated the U.S. gauge will snap the longest losing streak since July. The index has erased all its gains since the Federal Reserve said Sept. 13 that it will undertake a third round of so-called quantitative easing and probably hold the federal funds rate near zero until at least the middle of 2015. The Commerce Department will provide its report on orders for U.S. durable goods at 8:30 a.m. in Washington. Other data are forecast to show pending home sales increased in August while initial claims for jobless benefits declined last week. To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net; Paul Dobson in London at pdobson2@bloomberg.net To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

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