By Justin Carrigan Feb. 1 (Bloomberg) -- U.S. stock-index futures advanced and the euro snapped a four-day decline versus the dollar on speculation manufacturing is recovering around the world. Futures on the Standard & Poor’s 500 Index rose 0.5 percent at 10:10 a.m. in London. The euro strengthened 0.3 percent against the dollar and 0.4 percent compared with the yen. The zloty climbed as much as 1.3 percent to its highest in a year against the euro and the rand gained 0.6 percent against the dollar as factory production rose in Poland and South Africa. U.S. manufacturing probably expanded in January for a sixth month, the Institute for Supply Management may say today, adding to evidence the recovery in the world’s biggest economy is gaining momentum. Indexes of manufacturing in the euro region and the U.K. rose more than economists forecast. “We look for a further leg up in equities, which could be driven by positive economic and earnings news,” JPMorgan Asset Management strategists David Shairp and Rekha Sharma wrote in a report today. The prospect of central banks withdrawing stimulus may mean that “markets will be periodically challenged and volatility will be on the rise,” they wrote. The MSCI World Index of 23 developed nations’ stocks slipped 0.1 percent as Asian stocks dropped on concern China will take more steps to prevent its economy from overheating. Toshiba Corp. declined 6 percent in Tokyo after cutting its revenue forecast. Honda Motor Co. slid 2.5 after saying it’s recalling some cars in North America and the U.K. European Movers Europe’s Dow Jones Stoxx 600 Index fell 0.3 percent, paring earlier losses of as much as 0.8 percent. Vivendi SA, the owner of the world’s largest music company, slid 2.6 percent in Paris after a U.S. jury ruled it misled investors. Ryanair Holdings Plc advanced 5.1 percent in Dublin after Europe’s biggest discount airline raised its profit forecast. Northumbrian Water Group Plc led shares of utility companies higher, jumping as much as 13 percent in London, after the Sunday Times reported that Ontario Teachers’ Pension Plan may bid 1.7 billion pounds ($2.7 billion) for the company. The gain in U.S. futures indicated the S&P 500 may rebound from a three-month low. The U.S. Institute for Supply Management’s factory index, due at 10 a.m. in New York, rose to 55.5 last month from 54.9 in December, according to the median forecast of 62 economists surveyed by Bloomberg News. Readings greater than 50 signal expansion. Other reports may show personal spending rose and construction fell. Earnings Rebound A record nine-quarter earnings slump for S&P 500 companies is projected to have ended in the final three months of 2009 with a 76 percent increase in profits. Almost 80 percent of the results released since Jan. 11 topped the average forecasts of Wall Street estimates, data compiled by Bloomberg show. Exxon Mobil Corp. is among companies reporting earnings today. The Dubai Financial Market General Index climbed 1.5 percent after Aabar Investments PJSC, the Abu Dhabi fund that’s the biggest shareholder in Daimler AG, said full-year profit more than doubled. The MSCI Emerging Markets Index fell 0.4 percent, extending its drop since Jan. 11 to as much as 10 percent. The ruble weakened 0.4 percent to a six-week low against the dollar. The euro advanced against 11 of its 16 most-traded counterparts tracked by Bloomberg, rising most versus the South Korean won with a 1 percent gain. The Dollar Index, which tracks the U.S. currency against those of six major trading partners, ended a four-day advance, dropping 0.2 percent. Treasuries fell for the first time in three days, with the yield on the 10-year note rising 3 basis points to 3.62 percent. Copper for delivery in three months fell as much as 2.2 percent to $6,600 a metric ton in London, the lowest compared with intraday prices since Nov. 16. Tin retreated 5.2 percent to $16,300 a ton, the lowest since Dec. 24. Gold for immediate delivery added 0.3 percent to $1,083.55 an ounce and crude oil added 0.2 percent to $73.02 a barrel in New York. To contact the reporter on this story: Justin Carrigan in Copenhagen at swallace6@bloomberg.net

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