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By Bloomberg

Treasuries fell and U.S. equity-index futures rose before a report that will probably show a rebound in manufacturing, reinforcing the case for raising interest as the economy improves. The euro strengthened and gold declined for a third day.

The Treasury 10-year note yield increased two basis point to 2.06 percent at 10:12 a.m. London time. Standard & Poor’s 500 Index futures advanced 0.3 percent. Tesla Motors Inc. gained after unveiling batteries to story electricity. The U.K.’s FTSE 100 Index was little changed, and most European market were closed for a holiday. The euro rose to a two-month high versus the yen. The cost of insuring European corporate debt fell, heading for a second weekly decline. U.S. natural gas futures dropped 1 percent after Thursday’s biggest one-day gain in 15 weeks.

Manufacturing in the U.S. rose for the first time in six months in April, rebounding from the slowest growth since May 2013, economists said before an Institute for Supply Management report. April saw a reversal of some of the past year’s key trends: The Bloomberg Dollar Spot Index fell for the first month since June and euro-area bonds ended a 15-month run of gains.

“A huge amount depends on the U.S. data,” said Adam Cole, the global head of currency strategy at RBC Capital Markets in London. “After the awful Q1 data we got this week we’ve really got to see some evidence of things bouncing back in Q2. If we do then the dollar-positive trend reasserts itself and that is our main expectation. On balance the euro will probably weaken from here.”

U.S. Economy

The ISM’s index increased to 52 in April, from 51.5 a month earlier, according to the median of 84 estimates in a Bloomberg survey of economists. Readings above 50 indicate growth.

While data earlier this week showed the economy stalled in the first quarter, there were signs that the jobs market was improving, with U.S. jobless claims falling to the lowest level since 2000 last week. The Labor Department is scheduled to release April payrolls data next Friday.

The drop in Treasuries left yields on 10-year notes 15 basis points higher for the week. They reached 2.11 percent on Thursday, the highest since March 13.

U.K. government bonds rose after data showed growth in manufacturing cooled in March, mortgage approvals declined and overseas investors bought the most gilts on record. The 10-year yield declined four basis points to 1.80 percent.

S&P 500 E-mini futures expiring in June climbed. The index has fallen 1.5 percent this week and trimmed its April advance to 0.9 percent.

LinkedIn Falls

Tesla rose 1.1 percent in early New York trading. Chief Executive Officer Elon Musk unveiled a suite of batteries to store electricity for homes, businesses and utilities, marking the company’s expansion beyond electric cars.

LinkedIn Corp. slumped 19 percent in premarket U.S trading after posting quarterly revenue that missed analysts’ estimates for the first time.

Chevron Corp. and Moody’s Corp. are among 13 S&P 500 companies reporting earnings on Friday. About 73 percent of the S&P 500 companies that have reported earnings this season have beaten analysts’ profit projections, while 48 percent topped sales estimates.

Greek stocks climbed in April, posting the biggest gains in western Europe, amid optimism a deal over bailout aid will be reached.

Greek Talks

Prime Minister Alexis Tsipras told his cabinet on Thursday that he’s confident a deal to unlock funding is close. Greece and its euro-area partners stepped up talks in a bid to reach a preliminary deal by May 3, ahead of looming debt payments in early May, three people with knowledge of the talks said earlier.

Lloyds Banking Group Plc gained 3.1 percent as Britain’s biggest mortgage lender said it will exceed its lending profitability target after first-quarter earnings beat analyst estimates.

The euro strengthened 0.3 percent to $1.1262, rising for a seventh successive day, the longest run since December 2013. Its 4.6 percent jump in April was the largest since September 2010.

The 19-nation shared currency gained as much as 0.8 percent to 134.99 yen, the strongest level since Feb. 26.

Gold held the biggest loss in almost eight weeks. Bullion for immediate delivery traded at $1,182.77 an ounce from $1,184.37 on Thursday, according to Bloomberg generic pricing. The metal is poised to advance 0.4 percent this week.

Gas Stockpiles

Copper in London dropped 0.2 percent, trimming the biggest weekly advance since Sept. 2012. Nickel was little changed after closing 4 percent higher as negotiations failed to end a strike at the world’s second-largest ferro-nickel mine in Colombia.

U.S. natural gas for June delivery fell 3 cents, or 1.1 percent, to $2.720 per million British thermal units. The contract gained 14.5 cents on Thursday after U.S. stockpiles expanded by less than forecast last week. Prices climbed 4.2 percent in April, the biggest monthly gain since November.

The Markit iTraxx Europe Index of credit-default swaps on investment-grade companies fell two basis points to 59 basis points, according to data compiled by Bloomberg. The Markit iTraxx Crossover Index of high-yield companies dropped to 267 basis points from 279.5 basis points two weeks ago.