By Justin Carrigan Dec. 21 (Bloomberg) -- Stocks rose and the dollar climbed to a three-month high against the euro on evidence that the economic recovery is gathering momentum. Carbon-permit prices dropped after world leaders failed to set binding emissions targets at the Copenhagen climate summit. Europe’s Dow Jones Stoxx 600 Index gained 0.4 percent as of 10:13 a.m. in London. Futures on the Standard & Poor’s 500 Index added 0.2 percent. The dollar strengthened against 15 of the 16 most-traded currencies tracked by Bloomberg. European carbon- dioxide allowances for delivery in December 2010 fell as much as 8.7 percent to 12.40 euros a metric ton. Nickel climbed the most in five weeks on Russian plans to tax exports of the metal. U.S. consumers probably earned and spent more in November, giving retailers and real-estate agents reason to anticipate business will improve in 2010, economists said before reports this week. U.K. gross domestic product will expand 1.2 percent next year, the Confederation of British Industry said, raising a previous forecast for growth of 0.9 percent. “The market has already bought the recovery,” said William de Vijlder, chief investment officer at Fortis Investment Management in Brussels, which manages about $246 billion. “We need to see confirmation that indeed these expectations have proved to be justified.” Russian Stocks Rise The MSCI World Index of 23 developed nations’ stocks advanced 0.2 percent. Safran SA climbed 3.9 percent in Paris after winning a $5 billion contract to supply engines for China’s first narrowbody aircraft. Natixis SA added 1.9 percent after the French bank said it will be profitable in the fourth quarter. Russia’s Micex Index climbed 0.3 percent, led by OAO Rosneft and OAO Lukoil as crude oil traded above $73 a barrel. The MSCI Asia Pacific Index fell 0.4 percent, as Hong Kong- listed property developers and insurers declined on concern China will do more to curb real-estate speculation. Soho China Ltd., the biggest developer in Beijing’s central business district, dropped 4.5 percent and Poly (Hong Kong) Investment Ltd. lost 6.1 percent. The gain in index futures indicated the benchmark gauge for U.S. equities may extend the 0.6 percent advance made on Dec. 18. Last-minute shopping in the days leading up to Christmas may make up for lost weekend sales on the U.S. East Coast after record snowfalls shut stores early and kept shoppers at home, the National Retail Federation said. Voluntary Reductions European Union carbon permits fell the most since February on the European Climate Exchange. The U.S., China, India and other nations attending the two-week Copenhagen summit that ended at the weekend agreed to voluntary, rather than binding, targets to reduce emissions. The accord isn’t enough to boost demand for permits, said Trevor Sikorski, an emissions analyst at Barclays Capital in London. The dollar advanced 0.2 percent against the euro and traded at $1.4281, near its strongest level since Sept. 8. The rand dropped 1.1 percent to the weakest level against the dollar since Nov. 5. The Swiss franc was little changed against the euro, after rising as much as 0.7 percent earlier. Nickel rallied as much as 4.6 percent to $17,790 a metric ton on the London Metal Exchange as Russia’s government decided to reimpose a 5 percent tax on nickel exports that was suspended in January. Russia is home to OAO GMK Norilsk Nickel, the world’s largest producer of the stainless-steel ingredient. Copper for three-month delivery added 0.9 percent to $6,907 a ton, the first gain in three days. Government bonds declined, with the yield on the 10-year U.S. Treasury note rising as much as 5 basis points to 3.56 percent. The yield on the German 10-year bund, Europe’s benchmark government security, climbed 1 basis point to 3.15 percent. Greece’s bonds fell for a third day, pushing the 10- year yield to the highest level since March. To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net

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