By Will Kennedy Dec. 16 (Bloomberg) -- European stocks and U.S. index futures rose on speculation the Federal Reserve will hold its benchmark interest rate at a record low to help sustain the global economic recovery. Oil and metals rallied. The Dow Jones Stoxx 600 Index of European equities gained for a fifth day, climbing as much as 1 percent at 10:20 a.m. London time. U.S. Standard & Poor’s Index futures added as much as 0.6 percent. Oil advanced for a second day, climbing above $71 a barrel in New York as copper rose to a one-week high. Russia’s Micex Index climbed 2 percent, the steepest climb among world equity gauges. Fed Chairman Ben S. Bernanke and his Federal Open Market Committee colleagues, meeting in Washington today, may say U.S. growth is accelerating while repeating a pledge to keep the target rate for overnight bank loans near zero for an “extended period.” In Europe, services and manufacturing expanded at the fastest pace in more than two years in December, while U.K. unemployment declined for the first time since February 2008. “The Fed is likely to hint that interest rates will remain at current low levels for the next few quarters,” said Jesper Dannesboe, a commodity strategist at Societe Generale SA in London. “Another year of low interest rates is good for all growth-sensitive assets.” U.K. Homebuilders Gain The MSCI World Index of 23 developed nations’ stocks advanced 0.5 percent. U.K. homebuilders rallied in London after Citigroup Inc. advised buying shares of Barratt Developments Plc, Taylor Wimpey Plc and Redrow Plc. Japanese stocks climbed after the Nikkei newspaper said banks will be given 10 to 20 years to meet tougher capital rules; the Financial Services Agency said no agreement has been reached. Mizuho Financial Group Inc., Japan’s third-biggest lender, surged 15 percent. The gain in U.S. futures indicated the S&P 500 may pare yesterday’s 0.6 percent decline. Builders in November probably broke ground on more U.S. homes, and gains in consumer prices were within the Fed’s long-term forecasts, economists said reports set for release at 8:30 a.m. in Washington may show. The MSCI Emerging Markets Index slipped 0.2 percent as Chinese banks declined on a regulatory official’s warning that bad loans pose a long-term risk. Russia’s Micex climbed for a third day, its longest winning streak in two months, as rising oil and metals boosted the earnings outlook for commodity companies. Oil producer OAO Tatneft advanced 1.9 percent after profit jumped 55 percent in the first nine months of the year. Oil, Metals Climb Oil and industrial metals gained on optimism the recovery will boost raw material demand. Copper for delivery in three months rose 1.3 percent on the London Metal Exchange. Crude for January delivery gained as much as 0.9 percent to $71.35 a barrel in New York. Gold for immediate delivery rallied 0.6 percent in London, to $1,132.25 an ounce. Greece’s bonds snapped two days of declines, with the 10- year yield falling 4 basis points to 5.68 percent after the country sold 2 billion euros ($2.9 billion) of floating-rates privately to banks yesterday as it sought to plug a budget deficit that’s the highest in the European Union. U.S. Treasuries advanced, with the 10-yeear note yield dropping 2 basis points to 3.57 percent. The German bund yield was little changed at 3.23 percent. The Australian dollar fell against all 16 most-traded currencies tracked by Bloomberg after central bank deputy Governor Ric Battellino said monetary policy is back in “the normal range,” damping expectations for higher interest rates. Yields on government two-year notes fell 14 basis points to 4.30 percent, the biggest decline since Oct. 29. The pound rose, strengthening 0.2 percent versus the dollar, after the U.K. Office for National Statistics said jobless claims unexpectedly fell in November.

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