By Stuart Wallace Nov. 13 (Bloomberg) -- The dollar fell and commodities rose as Europe’s economy pulled out of its slump, reassuring investors that the recovery from the first global recession since World War II is gaining momentum. The Dollar Index, a six-currency gauge, dropped for the first time in three days. Copper gained 0.4 percent at 12:20 p.m. in London and gold climbed 0.2 percent. Futures on the Standard & Poor’s 500 index rose 0.3 percent. The economy of the 16 euro nations emerged from the recession in the third quarter, expanding 0.4 percent from the second as German exports increased, a European Union report showed today. International Monetary Fund Managing Director Dominique Strauss-Kahn said economies are at a turning point and the recovery has started, and the Reuters/University of Michigan index may show that U.S. consumer sentiment improved. “Overall risk sentiment is strong, holding up demand for the euro and commodity currencies,” said Yoh Nihei, trading group manager at Tokai Tokyo Securities Co. in Tokyo. The Dollar Index, which tracks the U.S. currency against the yen, euro, pound, Canadian dollar, Swiss franc and Swedish krona, declined 0.3 percent, snapping a two-day advance. The index dropped two days ago to 74.774, the lowest level since August 2008. The Australian dollar climbed 0.6 percent to 92.92 U.S. cents as Strauss-Kahn said Asia will lead the global economic recovery, followed by the U.S. and then Europe. Copper, Zinc, Tin Copper for delivery in three months advanced $13.50 to $6,515 a metric ton on the London Metal Exchange. Nickel, zinc and tin also gained. Bank of America Merrill Lynch raised its 2010 forecasts for copper, nickel, aluminum and zinc. Crude oil was trading little changed after paring its advance. European stocks rose for a third day as Compagnie Financiere Richemont SA, the world’s largest jewelry maker, reported better-than-estimated profit and British Airways Plc sealed a merger accord with Iberia Lineas Aereas de Espana SA. The Dow Jones Stoxx 600 Index of European shares gained 0.3 percent, extending a three-week high. Richemont surged 4.6 percent in Zurich. BA climbed 2.8 percent in London and Iberia added 2.4 percent in Madrid. Most Asian stocks dropped, trimming the MSCI Asia Pacific Index’s first weekly advance since Oct. 16. Central Glass Co. and Nippon Sheet Glass Co. declined more than 6 percent in Tokyo after reporting losses. Industrial & Commercial Bank of China Ltd. climbed 2 percent after its chairman predicted loan profitability among Chinese lenders will improve. S&P 500 Futures indicated the S&P 500 may rise after falling yesterday from a 13-month high. Walt Disney Co., the world’s largest media company, reported profit that beat analysts’ estimates. Abercrombie & Fitch Co. and J.C. Penney Co. are among companies due to report earnings before the opening of U.S. equity markets today. The Reuters/University of Michigan index will probably show that sentiment among U.S. consumers improved this month. The gauge may have risen to 71 from 70.6 in October, according to the median estimate of 69 economists in a Bloomberg survey. The measure is scheduled to be released at 10 a.m. New York time. The MSCI Emerging Markets Index posted its seventh gain in eight days, rising 0.1 percent. India’s Bombay Stock Exchange Sensitive Index added 0.9 percent, the steepest increase among benchmark indexes in major developing nations, as Tata Consultancy Services Ltd. jumped to a record on its deal to build a services center in Michigan for Dow Chemical Co. Rupee, Forint Emerging-market currencies strengthened, with India’s rupee gaining 0.6 percent against the dollar and Hungary’s forint rising 0.7 percent versus the euro. The U.S. economy will improve more quickly than most people currently forecast, said Johann Rupert, chairman of Richemont. Rupert said he’s cautious about the “sustainability of the improving economic outlook.” Treasury 10-year note yields slipped 1 basis point to 3.44 percent, according to BGCantor Market Data. The U.S. auctioned a record $16 billion of 30-year bonds yesterday, with the debt drawing the weakest demand since May. Sales of coupon-bearing Treasuries will increase to $2.38 trillion in the fiscal year that began Oct. 1, from $1.81 trillion in the prior 12 months, Goldman Sachs Group Inc. said in a report on Oct. 20. The 10-year German bund yield fell 2 basis points to 3.34 percent, and similar-maturity U.K. gilt yields declined 3 basis points to 3.74 percent. To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net

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