By Michael Patterson Oct. 26 (Bloomberg) -- The dollar fell and metals rose, driving copper to a 13-month high, as South Korea’s fastest economic growth in seven years and profits that almost doubled at Electrolux AB signaled the global recovery is accelerating. The dollar declined against 13 of the 16 most-traded currencies tracked by Bloomberg as of 7:29 a.m. in New York. Copper climbed as much as 1.2 percent to $6,728 a metric ton in London, while zinc rallied for a ninth day. South Korea’s Kospi Index advanced 1 percent and futures on the Standard & Poor’s 500 Index added less than 0.1 percent. South Korea’s gross domestic product increased 2.9 percent in the third quarter from the previous three months, beating the 1.9 percent median estimate of economists surveyed by Bloomberg. Copper rose to the highest level since September 2008 after refined imports by China expanded for the first time in three months. Electrolux, the world’s second-biggest household appliance maker, topped analysts’ profit estimates as sales of consumer products in North America climbed. “Risk appetite is increasing and we can expect more earnings surprises,” said Beat Siegenthaler, chief emerging- market strategist at TD Securities Ltd. in London. “That’s bad for the dollar.” The dollar fell as low as $1.5063 per euro, the weakest level since August 2008. The U.S. currency also slid to 91.78 yen from 92.06 yen, helping send IntercontinentalExchange Inc.’s Dollar Index 0.2 percent lower to 75.336. Metals, Soybeans Gain Metals rallied as refined copper shipments to China increased 29 percent in September, according to data from the Beijing-based customs office today. Zinc jumped 2.7 percent to $2,334 a ton on the London Metals Exchange, the highest level since May 2008. Soybeans climbed on the Chicago Board of Trade, extending a 15 percent advance in the past three weeks, on speculation that rain and snow will delay the U.S. harvest and hurt crop yields. Soybeans for January delivery added as much as 1.4 percent to $10.2125 a bushel. Oil fell for a third day, dropping below $80 a barrel, after Nigeria’s main rebel group called a cease-fire in its campaign targeting oil and gas installations. Jose Maria Botelho de Vasconcelos, president of the Organization of Petroleum Exporting Countries, said the group’s members would consider increasing production should oil prices rise before their December meeting in Angola. Crude for December delivery slipped as much as 93 cents, or 1.2 percent, to $79.57 a barrel in electronic trading on the New York Mercantile Exchange. Banks Drop Europe’s Dow Jones Stoxx 600 Index fluctuated between gains and losses as a 6.8 percent rally in Electrolux shares offset declines by financial companies. Lloyds Banking Group Plc slipped 3.5 percent in London. The U.K.’s biggest mortgage lender will ask shareholders to buy 11.5 billion pounds of stock and will present plans to convert a further 11 billion pounds ($18 billion) of subordinated debt into equity, according to a person familiar with the matter. ING Groep NV tumbled 7.8 percent in Amsterdam after the biggest Dutch financial-services company said it plans to raise 7.5 billion euros ($11.3 billion) in capital to repay state aid. The gain in U.S. futures indicated the S&P 500 may rebound after its biggest one-day decline in three weeks. Verizon Communications Inc., the second-largest U.S. phone company, advanced 1.4 percent in pre-market New York trading after third- quarter earnings and sales beat analysts’ estimates. Earnings Tally Corning Inc., the world’s biggest maker of glass for flat- panel televisions, gained 1.7 percent to $15.91 in Germany on profit that topped analysts’ expectations. More than 80 percent of companies in the S&P 500 that have reported third-quarter results beat analysts’ projections, exceeding the pace of 72.3 percent for the period ended in June. Governments around the world have spent $12 trillion to help end the global contraction, according to data from the Washington-based International Monetary Fund. The U.S. Treasury is selling a record $123 billion of debt this week to help fund its economic stimulus program. European governments are offering about $23 billion of securities. The yield on the 10-year Treasury note rose 1 basis point to 3.5 percent, according to BGCantor Market Data. Two-year note yields climbed 2 basis points to 1.02 percent.

Source