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By Bloomberg

The euro weakened and bonds from Italy to Spain fell as Greece’s debt-payment deadlines drew closer amid a standoff with creditors. European stocks erased gains while Chinese shares rose the most in four months and oil declined on record output from Saudi Arabia.

Europe’s shared currency declined 0.7 percent to $1.0913 at 10:38 a.m. in London. The yield on 10-year Italian bonds increased six basis points to 1.91 percent. The Stoxx Europe 600 Index and Standard & Poor’s 500 Index futures were little changed. Shares in Shanghai rallied after factory data signaled the country’s economy was stabilizing. Brent crude slid 0.9 percent to $64.98 a barrel.

Greece’s creditors showed no signs of budging over what it will take to seal an accord as the country faces four payments totaling almost 1.6 billion euros ($1.78 billion) to the International Monetary Fund this month. Consumer prices rose from Saxony to Bavaria and manufacturing in the euro area expanded, reports showed today. In the U.S., the Institute for Supply Management’s manufacturing index probably rose in May, and personal income increased in April, according to Bloomberg surveys.

“We’re looking at a very volatile period over next few days with Greek news dominating,” said Guillermo Hernandez Sampere, who helps manage about 150 million euros ($169 million) at MPPM EK in Eppstein, Germany. “There’s this never ending Greek story getting in all our heads.”

The euro weakened against all but two of its 16 major counterparts. The Bloomberg Dollar Spot Index added 0.2 percent as the U.S. currency strengthened versus 13 of its 16 major counterparts. The yen was little changed at 124.10 per dollar.

Norway’s krone had the biggest drop among major currencies as crude oil prices declined.

Government bonds were broadly lower across the euro area as inflation dimmed the outlook for the fixed payments on sovereign debt. The five-year, five-year forward inflation swap rate, a market metric identified by ECB President Mario Draghi as a benchmark for the inflation outlook, rose two basis points to 1.74 percent, advancing for a third-straight day.

The Stoxx 600 was little changed. Roche Holding AG and AstraZeneca Plc rose more than 2 percent after positive updates on cancer drugs.

Deutsche Annington Immobilien SE jumped 5.8 percent after Germany’s largest publicly traded owner of homes raised its 2015 profit forecast. Plus500 Ltd. advanced 5.4 percent as online gaming company Playtech Plc agreed to buy the British trading platform whose anti-money-laundering safeguards have come under scrutiny by regulators.

S&P 500 E-mini futures expiring this month increased, indicating the index will rebound after falling for the first time in four weeks.

The MSCI Emerging Markets Index lost less than 0.1 percent and a gauge of 20 currencies slipped 0.4 percent.

China’s stocks rose the most since January as an official manufacturing gauge showed a third month of expansion and speculation increased the government will take steps to tackle local government debt.

The Shanghai Composite Index climbed 4.7 percent and Hong Kong’s Hang Seng China Enterprises Index advanced 1.4 percent.

The official manufacturing Purchasing Managers’ Index was at 50.2 in May, according to the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. That compared with the 50.3 median estimate of economists surveyed by Bloomberg News. Numbers above 50 signal expansion.

Stocks extended gains after people familiar with the matter said policy makers are considering doubling the size of a clean- up program for shaky local government finances.

South Korea’s Kospi slipped 0.6 percent and the won slipped 0.2 percent, declining for a sixth day, the longest slump in 2 ½ months. Overseas shipments slumped 10.9 percent in May from a year earlier, underscoring concern that the fall in exports is harming a recovery in Asia’s fourth-biggest economy.

Russia’s ruble slid 1 percent. The Bank of Russia suspended one-year foreign-exchanged repurchase auctions, citing market changes. The manufacturing PMI fell to 47.6 from 48.9 in April, according to HSBC Holdings Plc and Markit Economics. The contraction was greater the 48.5 median estimate in a Bloomberg survey.

Oil in New York dropped 0.9 percent. The Organization of Petroleum Exporting Countries will probably maintain its collective quota when it meets June 5 in Vienna, according to a survey last month.

U.S. natural gas slid 0.3 percent for a sixth day of losses, the longest streak in more than two years. Futures have fallen to the lowest since April on forecasts for cooler weather that would limit demand from power plants after a Northeast heat wave.

Copper climbed after its first monthly loss since January as factory activity in China, the world’s biggest consumer, expanded for a third month. Prices rose as much as 0.6 percent, while most other industrial metals fell in London trading.