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By Bloomberg

Bonds fell from Germany to Italy after a European Central Bank official cooled speculation on expanding stimulus. Stocks dropped from a seven-year high and U.S. equity- index futures declined while the yen strengthened.

The yield on 10-year German bunds jumped four basis points to 0.49 percent at 8:05 a.m. in New York. The Stoxx Europe 600 Index lost 0.5 percent and Standard & Poor’s 500 Index futures slid 0.4 percent. The yen climbed 1.1 percent to 117.45 versus the dollar as the Bank of Japan kept asset purchases steady and cut its inflation forecast. The Bloomberg Dollar Spot Index slipped 0.4 percent. Gold rose with oil.

ECB Governing Council member Ewald Nowotny said investors should not get carried away by one policy meeting, damping speculation for a large-scale bond-buying program. The Bank of Japan left its stimulus program little changed a day before its European counterpart is expected to expand its own bond buying program. In the U.S., American Express Co., EBay Inc. and U.S. Bancorp are among companies reporting earnings.

“The market is a bit unsure about how to trade QE,” said Lyn Graham-Taylor, a fixed-income strategist at Rabobank International in London. “This is a case of bunds selling off on the risk of them disappointing tomorrow. Anything less than 550 billion euros we have flagged as disappointing, though arguably this number has now shifted a little bit higher.”

The yield on 10-year French notes rose five basis points to 0.70 percent and the rate on Italian notes added seven basis points to 1.74 percent. Spain’s yield jumped five basis points to 1.57 percent.

Raising Bets

Speculation that ECB President Mario Draghi will broaden asset purchases has increased after the Swiss National Bank scrapped a cap on the franc last week and Denmark’s central bank cut its deposit rates to minus 0.2 percent. Nowotny said today that “one should not get overexcited.”

Three shares declined for every two that advanced in the Stoxx 600, with trading volumes 30 percent higher than the 30- day average, data compiled by Bloomberg show. A four-day rally in the Stoxx 600 sent it to its highest level since January 2008.

Dutch chipmaker ASML Holding NV climbed 4.7 percent after forecasting first-quarter sales that topped analysts’ estimates and announcing a new 1 billion-euro share buyback program. Alstom SA advanced 3.4 percent after posting an increase in third-quarter revenue. The French company selling its energy- equipment businesses to General Electric Co. also reiterated its forecasts for sales growth and operating margin.

Netflix Jumps

S&P 500 futures expiring in March slipped after the index climbed for a second day. Netflix Inc. jumped 16 percent in German trading after saying it will complete its worldwide expansion by the end of 2016 amid better-than-predicted subscriber growth in the fourth quarter. International Business Machines Corp. lost 2.1 percent after forecasting profit that trailed some analysts’ estimates.

The MSCI Emerging Markets Index rose 1.5 percent, heading for the highest close since Dec. 8.

The Shanghai Composite Index jumped 4.7 percent, extending yesterday’s 1.8 percent advance.

Volatility in the benchmark index reached the highest level since 2009 this week after rising more than fourfold since July. The gauge plunged 7.7 percent on Monday after the securities regulator suspended three brokerages from loaning money to new equity-trading clients and said brokers shouldn’t lend to investors with assets below 500,000 yuan ($80,380).

‘Bull Trend’

“We would suggest that the regulator is not trying to reverse the bull trend in the overall market,” Jonathan Garner and Laura Wang, strategists at Morgan Stanley, wrote in a report. “The A-share bull run is intact although it is likely to proceed at a slower pace from here on out.”

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong advanced 2.4 percent.

Russia’s Micex Index added 0.8 percent, advancing for the first time in three days. The ruble weakened 1 percent to 65.7595 versus the dollar.

Brazil’s Ibovespa advanced 0.7 percent.

Oil rebounded from the biggest drop in a week amid the most volatile prices in more than three years. Futures rose as much as 1.6 percent to $47.13 a barrel in New York, retracing a 4.7 percent slide on Tuesday.

OPEC policies are protecting market share over revenue, Oman’s Oil Minister Mohammed Al-Rumhy said at conference in Kuwait City. The nation is not part of the Organization of Petroleum Exporting Countries.

Gold Gains

Gold topped $1,300 an ounce for the first time since August on speculation slowing global growth will prompt central banks to boost stimulus, spurring haven demand. After shunning gold for two years, investors are returning to the metal amid concern U.S. growth won’t be enough to offset weakness in foreign economies. Bullion for immediate delivery climbed as much as 0.6 percent to $1,303.63 an ounce.

The yen rose against all but one of its 16 major peers, rising most versus the pound. It gained 0.6 percent to 136.41 per euro, the first advance in four days.

The euro added 0.2 percent to $1.1577. The Swiss franc jumped 1.3 percent to 86.43 centimes per dollar and appreciated to 1.0003 per euro.

Sterling weakened after minutes from the last Bank of England policy meeting showed two policy makers dropped calls for an increase in interest rates