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By Bloomberg

Oil fell and energy producers led declines in European stocks before a report forecast to show the highest U.S. crude inventories in at least three decades are continuing to swell. Greece’s bonds dropped, while Chinese equity-index futures gained after the central bank cut banks’ reserve ratio.

West Texas Intermediate crude retreated 3.2 percent to $51.33 a barrel at 7:35 a.m. in New York. The Stoxx Europe 600 Index swung between gains and losses and Standard & Poor’s 500 Index futures slipped 0.4 percent. Greek stocks and bonds stayed lower after demand slumped to a more than eight-year low at the new government’s first sale of bills. Futures on the FTSE China A50 Index jumped 5.4 percent and copper rebounded. Petroleo Brasileiro SA rose 6.6 percent as its chief executive resigned and General Motors Co. gained after earnings beat estimates.

Oil fell for the first time in five days before data that may show U.S. stockpiles rose to the highest since at least 1982, contributing to a global glut that pushed prices to a six- year low. Greek Finance Minister Yanis Varoufakis arrived in Germany for meetings with European Central Bank President Mario Draghi and German Finance Minister Wolfgang Schaeuble as the country negotiates a new bailout. The ADP Research Institute is scheduled to release jobs data before the monthly payrolls report Friday.

“When the oil supply report does come out, it will potentially cause quite a bit of volatility,” said Matt Riordan, a Sydney-based portfolio manager who helps oversee about $7.5 billion at Paradice Investment Management Pty. “To try and see where the price is going from here will just be guesswork.”

Rising Inventories

Brent, the benchmark for more than half of the world’s oil, slipped 2 percent in London today after finishing Tuesday more than 20 percent above its Jan. 13 settlement, the common definition of a bull market.

U.S. crude inventories probably rose by 3.25 million barrels last week, according to a Bloomberg News survey of analysts before the Energy Information Administration report. Stockpiles probably climbed to about 410 million barrels through Jan. 30, the highest level in weekly data compiled by the EIA since 1982.

Copper rose 0.5 percent, rebounding from a 1.1 percent loss after China’s reserve ratio decision.

Energy shares fell the most among 19 industry groups, with BP Plc and Total SA losing at least 1 percent. Trading volumes in the Stoxx 600 were 32 percent greater than the 30-day average, data compiled by Bloomberg show.

Swedish lender Svenska Handelsbanken AB dropped 3.5 percent after naming a new chief executive officer. Hugo Boss AG lost 4 percent after the clothier reported fourth-quarter sales and profit that missed estimates.

LVMH Growth

LVMH Moet Hennessy Louis Vuitton SA advanced 5.4 percent after posting better-than-expected growth at its fashion and leather-goods unit, while wines and spirits sales improved. Banco Bilbao Vizcaya Argentaria SA climbed 2.8 percent after Spain’s second-biggest bank swung to a fourth-quarter profit as returns in its home market improved. Syngenta AG gained 4.5 percent after reporting that 2014 profit beat estimates.

Roche Holding AG rose 2.8 percent after saying one of its cancer drugs met its main goal in the last of human tests generally required before marketing approval.

Chipotle Mexican Grill Inc. lost 6.4 percent in early New York trading after posting fourth-quarter same-store sales that trailed analysts’ estimates and saying that higher food costs slowed profit gains. Gilead Sciences Inc. fell 5.5 percent after the world’s biggest biotechnology company said discounts for its blockbuster hepatitis C drugs will weigh on 2015 revenue.

Disney Beats

Walt Disney Co. advanced 4.1 percent after reporting first- quarter sales and earnings that beat analysts’ estimates

21st Century Fox Inc. and Yum! Brands Inc. are among companies set to release earnings. About 78 percent of the gauge’s companies that posted earnings this season beat analyst estimates, while 54 percent topped sales projections, data compiled by Bloomberg show.

The MSCI Emerging Markets Index advanced for a third day, rising 0.7 percent, with gauges in Malaysia and the Philippines climbing at least 1.2 percent. The Malaysian ringgit strengthened 1.6 percent, the most since September 2013, and South Korea’s won rose 0.9 percent.

Chinese equity-index futures signaled shares may rebound. The People’s Bank of China cut the reserve ratio by 0.5 percentage point. The reduction will take effect on Feb. 5. Stocks fell earlier in Shanghai after data showed a gauge of services expanded at the weakest pace in six months.

Russia’s Micex Index added 0.2 percent and the ruble weakened 1.2 percent.

Bank Seized

Turkish stocks fell for a second day, with the Borsa Istanbul 100 Index dropping 1.1 percent as four shares declined for every one that gained. The lira slipped 0.5 percent.

Turkey’s banking regulator seized control of Bank Asya in the culmination of a year-long campaign against the Islamic lender linked to anti-government cleric Fethullah Gulen. The Savings Deposit Insurance Fund, or TMSF, the agency responsible for resolving failed banks, appointed a new chief executive officer and board of directors to Bank Asya on Tuesday. The bank’s March 2023 Islamic dollar bond jumped 16 percent to 59 cents on the dollar, sending the yield 299 basis points lower to 17.26 percent.

Greek 10-year bonds declined with shorter-maturity debt, pushing the yield 10 basis points higher to 9.59 percent. While that’s down from as high as 11.40 percent on Feb. 2, it’s up from last year’s low of 5.52 percent set in September. The rate three-year notes climbed 62 basis points to 16.90 percent.

Greek Auction

The bid-to-cover ratio was the lowest since July 2006 at the sale of 812.5 million euros ($930.3 million) of bills maturing in August. Greece has 947 million euros of debt coming due on Feb. 6.

Italian bonds rose, with the 10-year yield falling three basis points to 1.55 percent. The rate on Treasuries dropped on basis point to 1.78 percent and German bunds yielded 0.35 percent.

The rate on 10-year gilts jumped two basis points to 1.48 percent as data showed growth at U.K. service companies exceeded economist estimates in January. The pound strengthened 0.5 percent to 75.33 pence per euro.

The euro slipped 0.3 percent to $1.1450 and weakened 0.3 percent to 134.50 yen.