Stocks in Europe rebounded from the biggest drop

European shares rebounded from the biggest drop in four months and U.S. futures index rose. Irish bonds fluctuated as European officials discussed the aid, while commodities fell on China's commitment to curb inflation.

The Stoxx Europe 600 index added 0.2 percent at 7:40 am in New York, linking yesterday's 2.3 percent drop. 500 of Standard & Poor's Index gained 0.2 percent, after rising as much as 0.5 percent earlier. The Shanghai Composite Index sank 1.9 percent, extending its drop November 08 to 10 percent higher. Ireland 10-year bond yield fell two basis points to 8.44 percent while the cost of insuring against a default on the country's debt grew for the first time in four days. The S & P GSCI index of 24 commodities fell to a minimum of three weeks.

Finance ministers from the 16-country euro zone started to work on a possible rescue plan for banks in debt in Ireland, without reaching an immediate rescue. China's Cabinet, said today that the government can impose temporary price controls on "high needs of each day" and production materials to counter the fastest inflation in two years.

The "flow of news and commentary following the meeting of ministers of the Eurogroup of finance five hours during the night seems to have increased the likelihood that a rescue package that goes to the Irish banking sector problems," Jim Reid, a strategist Deutsche Bank AG in London, wrote in a report released today. "However, as with all things EU, there seems to be total agreement but in any of the essential components that are needed to provide help."

Actelion, Amgen

Three companies rose for every two that fell in the Stoxx 600. Health care stocks led the gains, as Actelion Ltd. jumped 10 percent after people briefed on the matter, said Amgen Inc., the world's largest biotechnology company, is considering a bid for the Swiss pharmaceutical. Roche Holding AG advanced 1.8 percent as the largest maker of cancer medicines announced a cost reduction program. Thales SA, the largest European manufacturer of defense electronics, sank 3.8 percent as UBS AG downgraded the shares.

The gain in U.S. futures indicated that the S & P 500 can compare some of yesterday's fall of 1.6 percent. A Labor Department report due at 8:30 am in Washington today may show the cost of living rose for the fourth month of October. The consumer price index rose 0.3 percent after rising 0.1 percent the previous month, according to the median forecast of 80 economists.Other figures may show housing starts fell to its lowest level since July.

Emerging Markets

MSCI Emerging Markets Index declined 1 percent and headed toward the lowest close since Oct. 1. Chongqing Brewery Co. fell by 10 percent limit in Shanghai trading on concern the government will prevent the transmission companies increased costs to consumers. China's central bank could raise interest rates for the second time this year, as soon as November 19 to combat inflation, the China Securities Journal reported today.

The difference in yield, or spread, between the Irish 10-year bonds and similar maturity German bonds, the reference values of the region's government, was extended for the second day, rising to 563 basis point points. Swaps credit-default secure the Irish government bonds rose 17 basis points to 537, according to CMA, a data provider.

LCH Clearnet Ltd. doubled the margin requirement that charges extra for bond trading in Ireland and 30 percent of the net positions. The increase is based on the positions outstanding at the close of business tomorrow, HCL said in a statement on its website.

Treasuries were little changed, with the spread between the 10 - and 30-year values, near the narrowest in two weeks.

Sugar, metals slip

The raw sugar futures fell 1.1 percent after China said it would sell a sweetener of reservations. The GSCI index slipped to 1.4 percent to 557.68, the lowest since Oct. 27, before trading up 0.6 percent. Zinc fell 2.8 percent after falling 8.5 percent yesterday in London, and copper fell 0.8 percent. Oil fell 0.9 percent to $ 81.60 a barrel in New York.

The yen fell against all 14 of his 16 fellow seniors. The euro rose 0.2 percent to 112.59 yen and was little changed at $ 1.3474. The dollar rose 0.2 percent to 83.47 yen.