European stocks rose, erasing losses since Lehman Brothers Holdings Inc.’s collapse, on speculation the economy can withstand the region’s sovereign-debt crisis. U.S. index futures gained while copper, gold and sugar advanced. The Stoxx Europe 600 Index climbed 0.9 percent to its highest since September 2008 at 7:10 a.m. in New York, while futures on the Standard & Poor’s 500 Index were up 0.3 percent. The euro weakened against all but two of its 16 biggest peers, falling as much as 0.6 percent to a record low against the franc. The German bund yield dropped two basis points to 3.01 percent. South Korea’s Kospi Index lost 0.3 percent, paring an earlier 1.5 percent decline, after the country conducted a live- firing drill without drawing retaliation from its northern neighbor. Copper added 1 percent, gold gained 0.5 percent and raw sugar jumped to a 28-year high. The Stoxx 600 has rallied 6.5 percent this month, taking its advance this year to 9.9 percent, as reports showed the global recovery is intact even as Ireland got a European Union bailout to shore up its banking system. Data scheduled for release this week may show U.S. gross domestic product grew 2.8 percent in the third quarter, up from a previous estimate of 2.5 percent, according to a survey of analysts. “The start of 2011 might be quite good as we still have a lot of liquidity driving the market,” said Michael Koehler, head of strategy at Landesbank Baden-Wuerttemberg in Mainz, Germany. “The latest economic data that we got, especially from the U.S., was overall really good and we will definitely not see a double dip. Though the sovereign debt crisis issue is still not solved.” Highest Since Lehman The Stoxx 600 advanced to its highest level since September 2008. Volkswagen AG, Europe’s biggest carmaker, rallied 2.2 percent after saying it expects sales in China to grow 10 to 15 percent next year. Abertis Infraestructuras SA gained 1.9 percent following a Sunday Times report that CVC Capital Partners Ltd. may bid for the Spanish highway operator. Banco Popolare SC climbed 6.6 percent, the first gain in eight days, after Goldman Sachs Group Inc. lifted its recommendation on the lender to “neutral” from “sell.” Bank of Ireland tumbled 7.5 percent, the biggest drop on the Stoxx 600. Airline stocks retreated as snow in Europe disrupted air travel for a third day. British Airways Plc sank 1 percent, while Deutsche Lufthansa AG lost 0.8 percent. U.K. natural gas for same-day delivery rose 8 percent, the largest advance in more than two weeks, to 69.5 pence a therm after National Grid Plc forecast record demand today. French Bond The gain in U.S. futures indicated the S&P 500 may extend three weeks of gains. The benchmark gauge closed last week at its highest level since September 2008. The euro slid 0.5 percent against the yen, weakening to the lowest level in almost two weeks, and dropped 0.2 percent versus the dollar. The New Zealand dollar strengthened against all 16 of its most-actively traded counterparts, advancing 0.8 percent versus the U.S. currency. The franc appreciated 0.2 percent compared with the dollar. The yield on the French 10-year bond declined two basis points to 3.38 percent. The similar-maturity U.S. Treasury yield fell two basis points to 3.32 percent before the Federal Reserve buys as much as $17 billion of securities maturing between 2014 and 2020 as part of its so-called quantitative-easing program. Copper climbed $90 to $9,160 a metric ton, near the all- time high of $9,267.50 reached on Dec. 14. Raw sugar rose as much as 3.1 percent to 33.5 cents a pound, the highest price since January 1981. Gold rose $6.62 to $1,382.07 an ounce. Crude for January delivery gained 0.3 percent to $88.25 a barrel on the New York Mercantile Exchange. Emerging Markets The MSCI Emerging Markets Index retreated 0.3 percent. China’s Shanghai Composite Index sank 1.4 percent, the biggest decline in almost three weeks, on speculation the government will raise interest rates to curb inflation. Investors are too optimistic given the prospects for tighter monetary policy, Hao Hong, a Beijing-based equity strategist at China International Capital Corp., wrote in a report today. The forint weakened 0.2 percent against the euro before the Hungarian central bank’s interest-rate decision scheduled for 2 p.m. Budapest time. The cost of insuring South Korean debt jumped the most in almost three weeks, according to CMA prices for credit-default swaps. Contracts insuring $10 million of debt for five years rose $7,000 to $100,000 a year. To contact the reporter for this story: Justin Carrigan in London at jcarrigan@bloomberg.net To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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