Feb. 15 (Bloomberg) -- The yen weakened and oil approached a two-year high on signs economic growth is improving. Stocks fluctuated after the Standard & Poor’s 500 Index yesterday climbed to the highest since June 2008, and Bahrain bonds fell. The yen depreciated against all but two of its 16 most- traded counterparts at 10:45 a.m. in London. The euro strengthened 0.3 percent versus the dollar. The MSCI World Index added 0.2 percent, while S&P 500 futures were little changed. Brent jumped 0.5 percent. Bahrain bonds retreated, sending the yield on the government’s 10-year dollar note to a record high. German investor confidence advanced for a fourth month in February, the ZEW Center for European Economic Research said. U.S. retail sales probably increased last month, according to economists surveyed by Bloomberg before today’s report. Japan’s central bank raised its economic assessment for the first time in nine months while inflation in China picked up less than analysts estimated. “Global demand is strong and that will continue for a while,” said Shintaro Takeuchi, who helps manage about $20 billion at Tokio Marine & Nichido Fire Insurance Co. The yen depreciated 0.2 percent against the dollar, and declined 0.5 percent versus the euro. The krona appreciated 0.1 percent against the dollar as Sweden’s central bank raised its benchmark repo rate for a fifth time since July and signaled it will pick up the pace of monetary tightening to keep inflation and credit growth in check in Europe’s fastest-growing economy. Pound Pares Gain The pound pared gains against the dollar and weakened 0.2 percent versus the euro even as a report showed U.K. inflation accelerated to the fastest pace in more than two years in January. Consumer prices rose 4 percent from a year earlier, matching the median forecast of 30 economists in a Bloomberg News survey. U.S. index futures were little changed after the S&P 500 yesterday rose 0.2 percent. Retail sales probably increased in January for a seventh month as post-holiday promotions lured U.S. shoppers, economists said before a report from the Commerce Department, due at 8:30 a.m. in Washington today. The projected 0.5 percent gain in purchases would follow a 0.6 percent December increase. Other data may show the cost of imported goods climbed and manufacturing in the New York region grew at the fastest pace in eight months. The Stoxx Europe 600 Index rose less than 0.1 percent. Barclays Plc led bank stocks higher, rising 3.6 percent after posting profit that beat analysts’ estimates. Danone, the world’s largest yoghurt maker, jumped 3.1 percent after profit also topped forecasts. UniCredit SpA climbed 3 percent after Societe Generale SA recommended buying shares of Italy’s largest bank. Rio Tinto Group, the world’s third-largest mining company, slid 1.8 percent as copper declined. Bahrain Protests Bahrain’s dollar bonds due 2020 fell, sending yields up 6 basis points to 6.21 percent, the highest level since the debt was issued in March, according to data compiled by Bloomberg. The cost of insuring Bahrain’s bonds against default jumped 11 basis points to 254, the highest in a week, according to CMA prices for credit-default swaps. Protests against the government escalated today as a second demonstrator was reportedly killed and police used tear gas to break up the funeral march of an opposition supporter. Brent crude for April settlement rallied as much as 0.9 percent to $104.04 a barrel, before trading at $103.67. It reached $104.30 yesterday, the highest since September 2008. U.K. natural-gas for delivery today rose as much as 5.3 percent, to 55 pence a therm after a processing plant fault curbed pipeline deliveries from Norway last night. The yield on the two-year German note rose one basis point to 1.41 percent, with the similar-maturity U.S. Treasury note yield two basis points higher at 0.86 percent. --With assistance from David Merritt, Michael Patterson, Michael Shanahan and Daniel Tilles in London. Editors: Stephen Kirkland, Mark Gilbert To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net.

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