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By Bloomberg

European stocks rose with U.S. equity-index futures amid signs the European Union may try to reach a deal with Greece. The euro and Italian bonds pared declines, while oil fell on record output from Saudi Arabia.

The Stoxx Europe 600 Index advanced 0.4 percent at 8:11 a.m. in New York, and Standard & Poor’s 500 Index futures added 0.3 percent. Europe’s shared currency slid 0.4 percent to $1.0940. The yield on 10-year Italian bonds increased four basis points to 1.89 percent. Shares in Shanghai rallied the most in four months after factory data signaled China’s economy was stabilizing. A Bloomberg gauge of emerging-market currencies fell to a two-month low. Brent crude dropped 1.1 percent to $64.84 a barrel.

The EU wants “to make it possible for Greece” to accede to an agreement on reforms by June 5 ahead of a deadline to pay International Monetary Fund debt, EU Commissioner Guenther Oettinger said in interview in Berlin. Greece faces four payments totaling almost 1.6 billion euros ($1.78 billion) to the IMF 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 the 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 four of its 16 major counterparts. The Bloomberg Dollar Spot Index added 0.3 percent. The yen was little changed at 124.11 per dollar.

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

Bonds Fall

The yield on Spain’s 10-year notes jumped four basis points to 1.88 percent and Portugal’s rate climbed 12 basis points to 2.69 percent. Greece’s yield climbed 27 basis points to 11.52 percent.

The five-year, five-year forward inflation swap rate, a market metric identified by European Central Bank President Mario Draghi as a benchmark for the inflation outlook, rose three basis points to 1.76 percent, advancing for a third- straight day.

The Stoxx 600 rose for the first time in three days. Roche Holding AG climbed 2.2 percent and AstraZeneca Plc rose 0.6 percent after positive updates on cancer drugs. Lloyds Banking Group Plc added 1.1 percent after the U.K. government said it will sell shares in the lender to individual investors over the next year.

Deutsche Annington Immobilien SE jumped 6.9 percent after Germany’s largest publicly traded owner of homes raised its 2015 profit forecast.

Altera Bid

Altera Corp. jumped 5.7 percent in early New York trading, signaling a second day of gains, as people familiar with the matter said Intel Corp. is nearing a deal to purchase the chipmaker.

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.

Currencies Slide

A gauge of 20 emerging-market currencies dropped 0.5 percent.

Russia’s ruble slid 1.8 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.

South Africa’s rand dropped 0.8 percent and Turkey’s lira lost 0.6 percent. Poland’s zloty dropped 0.5 percent versus the euro amid weaker-than-forecast manufacturing.

South Korea’s Kospi slipped 0.6 percent and the won slipped 0.2 percent, declining for a sixth day. 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.

OPEC Quota

Oil in New York dropped 1.1 percent to $59.62. 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.

The cost of insuring investment-grade debt rose to the highest level since December, with the Markit iTraxx Europe Index of credit-default swaps up one basis point at 67 basis points, according to data compiled by Bloomberg. The average yield on investment-grade bonds in euros is now at 1.10 percent after reaching a record low of 0.85 percent in March, Bank of America Merrill Lynch Index data show.