By David Merritt Feb. 17 (Bloomberg) -- Stocks rose, driving the MCSI World Index higher for a third day as earnings beat analysts’ estimates and on speculation government reports will signal U.S. growth is accelerating. Copper gained and the yen declined. The MSCI gauge of 23 developed nations’ stocks advanced 0.7 percent at 10:26 a.m. in London. Futures on the Standard & Poor’s 500 Index rose 0.3 percent, after the benchmark U.S. equity measure yesterday surged the most since November. Copper climbed 1.3 percent. The yen weakened against all of its 16 most-traded peers. More than 350 companies in the S&P 500 have posted results since Jan. 11 and about 76 percent have topped estimates for earnings per share, according to Bloomberg data. Western European companies have beaten net income forecasts in the same period by an average of 2.9 percent, the data show. U.S. manufacturing probably expanded for a seventh month in January and homebuilding increased, adding to evidence of a rebound in the world’s largest economy, economists said. “I’m very optimistic that markets can continue the uptrend,” Tim Schroeders, who helps manage about $1.1 billion of equity investments at Pengana Capital Ltd. in Melbourne, said in an interview with Bloomberg Television. “The pre-conditions are in place economically for a much-improved 2010.” BNP Gains Europe’s Dow Jones Stoxx 600 Index rose 1.1 percent for its biggest two-day gain in two months, as all 19 industry groups rallied. BNP Paribas gained 2.3 percent in Paris after France’s largest bank posted its fourth straight quarterly profit. Atos Origin surged 5.6 percent after the computer-services provider reported operating margins at the higher end of its forecasts. Deutsche Boerse AG, Europe’s largest exchange by market value, climbed 2.4 percent in Frankfurt after a smaller-than-expected loss. The MSCI Asia Pacific Index surged 1.8 percent, its biggest gain since November. Mitsubishi Corp., a commodities trader, gained 3.4 percent in Tokyo. CSL Ltd., the only influenza- vaccine maker in the Southern Hemisphere, advanced 5.1 percent in Sydney after profit rose more than analysts expected. The MSCI Emerging Markets Index rose 0.9 percent to the highest level in two weeks. Poland’s WIG20 Index jumped 2 percent, the steepest advance among equity indexes in major developing nations, as copper producer KGHM Polska Miedz SA climbed 3 percent. Malaysia’s ringgit led gains among emerging- market currencies, strengthening 1.1 percent against the dollar. Whole Foods Jumps The gain in U.S. futures indicated the S&P 500 may extend yesterday’s 1.8 percent rally. Fifteen companies from the benchmark index are scheduled to report earnings today, including Deere & Co. and Hewlett-Packard Co. Whole Foods Markets Inc., the largest U.S. natural-goods grocer, jumped 11 percent in German trading after raising its full-year profit forecast. Production at U.S. factories, mines and utilities climbed 0.7 percent last month after a 0.6 percent gain in December, according to the median estimate of 78 economists surveyed by Bloomberg News. The Federal Reserve’s industrial production report is due at 9:15 a.m. in Washington. A separate report from the Commerce Department at 8:30 a.m. may show builders broke ground on 580,000 houses in January, up 4.1 percent from December when colder-than-average temperatures depressed construction. Nickel, Copper Nickel climbed to a six-month high in London and copper extended gains. The construction industry is the biggest user of copper. Nickel for delivery in three months jumped as much as 1.3 percent to $20,589 a ton on the London Metal Exchange, the highest since Aug. 14. Copper increased 1.3 percent to $7,240 a ton, the highest since Jan. 27. The S&P GSCI Index of 24 commodities rose to a three-week high, led by gains in lead, zinc, nickel and natural gas. Crude oil for March delivery advanced as much as 1.1 percent to $77.82 a barrel on the New York Mercantile Exchange, the highest since Feb. 3. Gold increased to $1,124.23 an ounce, the most since Feb. 3. The yen weakened 0.5 percent against the dollar and 0.3 percent compared with the euro. The euro lost 0.2 percent against the dollar, after trading at a one-week high yesterday. U.S. Treasuries declined, with the 10-year note yield rising 3 basis points to 3.69 percent, after Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said yesterday a “nascent” recovery will continue. The Fed will publish the minutes of its Jan. 26-27 policy meeting today. Spain’s bonds were little changed as the nation started selling 5 billion euros of 15-year bonds, its first transaction managed by banks since markets were roiled by concern that some European governments will fail to reduce their budget deficits. Finance ministers met in Brussels this week to discuss support for Greece, which has the region’s largest shortfall. Greek two-year government notes rose, pushing the yield down 10 basis points to 5.32 percent, while 10-year yields fell 5 basis points to 6.34 percent. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net.

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