By Daniel Tilles Dec. 8 (Bloomberg) -- Bonds fell around the world and the dollar strengthened on speculation President Barack Obama’s tax- cut accord will help spur economic growth. Commodities fell on concern China may raise interest rates, while stocks and U.S. index futures fluctuated. The yield on the German 10-year bund climbed four basis points at 11:30 a.m. in London, reaching 3 percent for the first time since May. Treasury 10-year yields rose six basis points, while Irish 10-year yields fell 10 basis points as the government won a budget vote in parliament. The Stoxx Europe 600 Index gained 0.2 percent and futures on the Standard & Poor’s 500 Index declined a similar amount. Cotton dropped 2.6 percent as silver fell 2.1 percent. Global bond markets extended a three-month decline after Obama agreed to extend Bush-era tax cuts. The compromise may add as much as half a percentage point to economic growth next year, according to JPMorgan Chase & Co. China said today it will release consumer price-index data on Dec. 11, two days earlier than planned, fanning speculation interest rates may be increased. Irish Finance Minister Brian Lenihan won parliamentary backing in the first votes on his 6 billion-euro ($8 billion) austerity budget. “Extending tax cuts and allowing the deficit to remain extremely elevated could be an economic masterstroke, thus pushing up growth,” Jim Reid, head of fundamental strategy at Deutsche Bank AG in London, wrote today in a note to investors. “Or it could lead us a step closer towards fiscal ruin. It could be eventually be both.” Irish Spread Narrows Japanese five-year yields jumped as much as 10 basis points to 0.515 percent in Tokyo, the biggest increase since June 11, 2008, according to data compiled by Bloomberg. The extra yield investors demand to hold Irish 10-year bonds instead of benchmark German bunds narrowed seven basis points to 501 basis points. The cost of protecting against a European junk-bond default rose from a one-month low, with the Markit iTraxx Crossover Index of credit-default swaps on 50 companies climbing 3 basis points to 456, according to Markit Group Ltd. The Dollar Index, which tracks the currencies of six U.S. trading partners, rose 0.3 percent to 80.08, climbing for a third day. The euro weakened 0.1 percent to $1.3242, while the New Zealand dollar declined against all but one of its most- traded counterparts amid speculation the Reserve Bank of New Zealand will keep its main rate at 3 percent tomorrow, according to all 14 economists surveyed by Bloomberg. European Stocks Rise The Stoxx 600 advanced for a third day toward its highest close since September 2008. Smith & Nephew Plc, Europe’s largest maker of shoulder and knee implants, rose 4.8 percent after Goldman Sachs Group Inc. recommended buying the stock. Gains were limited as Porsche SE led automakers lower, dropping 3.8 percent to snap a six-day rally. Capital Shopping Centres Group Plc sank 3.7 percent after Simon Property Group Inc. said it may drop its interest in buying the U.K. company. U.S. futures were little changed. The S&P 500 pared gains in the final hour of trading yesterday, pulling the benchmark gauge down from a two-year high, after Obama told a White House news conference he’ll push to let the tax cuts expire in two years. The MSCI Asia Pacific Index fell 0.73 percent, the most in almost two weeks. Cnooc Ltd., China’s biggest offshore oil producer, declined 2.4 percent in Hong Kong. Sumco Corp., a Japanese maker of silicon wafers for semiconductors, slumped 9.6 percent in Tokyo after forecasting a wider full-year net loss. Korean Tensions The MSCI Emerging Markets Index fell 1 percent, on course for its biggest decline since Nov. 26. The measure climbed 5.1 percent in the previous five days. The Shanghai Composite Index dropped 1 percent. China’s statistics bureau is bringing forward the release of economic data including retail sales figures by two days as investors speculated the central bank is preparing to raise borrowing costs. South Korea’s Kospi Index retreated 0.4 percent after North Korea fired artillery shells into its own waters near the disputed western border with South Korea today, according to a government official in Seoul. The won dropped 1.3 percent, the most since Nov. 26. The S&P GSCI index of 24 commodities fell 0.5 percent, the biggest drop in a week. Copper declined 0.5 percent to $8,840 a metric ton after climbing to a record $9,044 yesterday. Gold fell 0.4 percent to $1,397.13 an ounce. It also traded at a record high yesterday. --With assistance from Michael Shanahan, David Merritt, Claudia Carpenter, Abigail Moses, Jason Webb, Matthew Brown and Paul Armstrong in London. Editors: Paul Sillitoe, Justin Carrigan To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net To contact the editor responsible for this story: Paul Sillitoe in London at psillitoe@bloomberg.net

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