Dec. 28 (Bloomberg) -- The dollar weakened and the Swiss franc climbed to a record before a U.S. housing report that may indicate prices fell, while European bonds rose as France’s economy expanded less than initially estimated. Stocks and index futures advanced. The dollar depreciated 0.8 percent against the euro at 7 a.m. in New York. The franc gained against all 16 of its major peers. The 10-year German bund yield declined six basis points. The Stoxx Europe 600 Index increased 0.2 percent, trimming yesterday’s 0.8 percent drop, the most in a month. Standard & Poor’s 500 Index futures added 0.2 percent, while the Shanghai Composite Index slid 1.7 percent. Gold rallied for a third day. U.K. markets were closed for a holiday for a second day. U.S. home prices probably dropped in October, a sign housing will remain a weak link as the economic recovery accelerates into 2011, economists said before today’s report. France’s economy grew 0.3 percent in the third quarter, less than the 0.4 percent preliminary estimate, the Paris based statistics office said. China’s stocks fell for a fifth day as Li Daokui, a central bank adviser, said adjustments in rates and reserve requirements are “very necessary” in 2011. “The global economy is recovering, but as a backdrop there’s the China overheating concern because it’s still unable to be controlled,” said Danny Yan, a Hong Kong-based fund manager at Haitong International Asset Management, which oversees about $400 million. Dollar, Franc The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell for the fourth day, the longest run of declines since Sept. 29. The franc appreciated as much as 1.8 percent to 94.35 centimes against the dollar, and rose 0.9 percent versus the euro. A UBS AG index of Swiss consumption, which aims to predict developments about three months ahead, stayed above its long-term average in November, the Zurich-based bank said. The yield on the French 10-year bond declined four basis points to 3.33 percent, while the German two-year note yield dropped six basis points. Alcatel-Lucent SA gained 1.6 percent after it resolved U.S. criminal and civil probes into allegations of bribes. Tenaris SA fell 2.5 percent after Exane BNP Paribas downgraded the shares. Makhteshim-Agan Industries Ltd., the world’s largest maker of generic agrochemicals, climbed 7.2 percent in Tel Aviv after Koor Industries Ltd. agreed with China National Chemical Corp. to take Makhteshim private. Koor rallied 5.7 percent. Asian Stocks The MSCI Asia Pacific Index rose 0.4 percent. Mizuho Financial Group Inc., Japan’s third-biggest bank by market value, gained 1.3 percent after the lender said it won’t need to sell more shares in order to meet Basel Committee on Banking Supervision capital requirements. China Resources Land Ltd., a state-controlled developer, dropped 2.4 percent as the market resumed trading following the three-day Christmas break. U.S. futures gained after the S&P 500 yesterday closed up 0.1 percent, extending what would be its biggest December rally since 1991, with the index advancing 6.5 percent this month and 13 percent in 2010. About 468 million shares changed hands on the NYSE yesterday, the fewest for a full-day session since May 1998, as trading slowed following a snowstorm. New York commuters and travelers face further disruptions today as winds hinder efforts to clear roads and runways following the heaviest December snows in six decades. General Motors Co. rose 1.7 percent in pre-market trading as brokerages including JPMorgan Chase & Co. and Morgan Stanley initiated coverage of the automaker with a positive view. House Prices Property values in 20 U.S. cities were down 0.2 percent from October 2009, the first year-over-year decline since January, according to the median forecast of 17 economists surveyed by Bloomberg News before a report from S&P/Case- Shiller, due at 9 a.m. in Washington. A separate report from the Conference Board, scheduled for 10 a.m., may show consumer confidence rose to a seven-month high in December. Gold climbed as much as 1 percent to $1,397.93 an ounce on speculation that the dollar’s retreat may boost demand for the precious metal as an alternative investment. Silver increased to a one-week high. Oil rose 0.3 percent to $91.26 a barrel. The MSCI Emerging Markets Index advanced for the first time in three days, increasing 0.3 percent, as higher commodity prices boosted earnings outlooks for producers. Currencies gained, with the yuan rallying 0.09 percent to close at 6.6248 per dollar in Shanghai. The ruble climbed as much as 0.7 percent to a two-month high as oil traded above $91 a barrel. South Africa’s rand advanced 1.2 percent to the strongest level since December 2007 on higher prices for precious metals. --With assistance from David Merritt and Dan Tilles in London. Editors: Stephen Kirkland, Paul Sillitoe 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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