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By Bloomberg

The dollar maintained gains and gold fell after U.S. growth data supported the case for higher interest rates. Energy and technology stocks led shares higher in Europe and Asia as companies reported better-than-estimated earnings.

The Bloomberg Dollar Spot Index rose 0.3 percent at 8:58 a.m. in New York, extending its biggest monthly advance since January. Treasury 10-year notes were little changed, with yields at 2.28 percent. The yield gap widened with German bunds, which rose on signs of slowing inflation in the euro area. U.S. equity-index futures fell and gold headed for its biggest monthly decline in two years. European stocks gained for a third day.

The U.S. economy expanded at a faster pace in the second quarter after a revision showed a gain in the previous period, Commerce Department data showed. The Federal Reserve in a statement Wednesday said it will tighten policy once it sees “some further improvement in the labor market.”

“The GDP revision signals a potential lift-off in Fed rates starting in September, given the strength of the economy,” Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles, said by phone. “There were some slightly disappointing Facebook numbers, and Whole Foods was a disaster, which could weigh on sentiment today. The fact that China was down again today, reversing yesterday’s strength, is just another negative factor.”

Gross domestic product rose at a 2.3 percent annualized rate, and a revised 0.6 percent advance in the first quarter wiped out a previously reported contraction, Commerce Department data showed Thursday in Washington. The median forecast of 80 economists surveyed by Bloomberg called for a 2.5 percent gain. Consumer spending grew more than projected.

Bloomberg’s index of the dollar’s performance versus 10 major currencies has climbed 2.7 percent in July and 7.3 percent this year as investors prepare for higher U.S. interest rates. The dollar strengthened 0.4 percent to $1.0944 per euro today and added 0.4 percent to 124.42 yen.

Peso Slides

A gauge tracking 20 emerging-market currencies declined 0.6 percent on Thursday and is down 3 percent in July, its biggest slump since January. Colombia’s peso led losses against the dollar this month, dropping 8.6 percent this month, followed by the Brazilian real and Russian ruble, both sliding more than 7 percent.

Fed Chair Janet Yellen is guiding the central bank toward its first rate increase in almost a decade as the U.S. approaches full employment. She’s said the Fed is likely to tighten policy this year should the economy continue to improve in line with her expectations. Economists have put the chance of a September increase at 50 percent.

Germany’s 10-year bund yield declined three basis points to 0.68 percent after reports showed annual inflation in most German states slowed in July and Spanish consumer prices declined. That pushed the yield gap between Treasuries and bunds four basis points wider to 161 basis points.

The U.S. will sell $29 billion of seven-year securities in the last of four note auctions this week totaling $105 billion.

The Stoxx Europe 600 Index climbed 0.7 percent, extending gains after a report showed economic confidence the euro area hit four-year high this month, boosted by relief Greece isn’t about to give up the currency union. Standard & Poor’s 500 Index futures fell 0.2 percent.

Nokia Climbs

Nokia Oyj and Royal Dutch Shell Plc led technology companies and energy producers higher and Deutsche Bank AG rallied as profit more than tripled. Renault SA slid 7.8 percent after its profit gain failed to keep pace with rival PSA Peugeot Citroen.

Facebook Inc. fell 2.1 percent in early New York trading after Mark Zuckerberg asked for patience on applications that could be making billions on their own, after reporting second- quarter revenue that beat analysts’ estimates.

Procter & Gamble Co., Broadcom Corp. and Expedia Inc. are among 53 S&P 500 companies reporting earnings on Thursday. Among the 288 S&P 500 companies that have reported earnings this season, about three-quarters beat analysts’ profit estimates, while half topped sales projections.

The MSCI Asia Pacific Index added 0.3 percent, paced by Nintendo Co. after the Japanese gaming company returned to a profit.

The MSCI Emerging Markets Index slipped 0.5 percent, extending this month’s decline to 7.9 percent, heading for the worst month since May 2012. The Shanghai Composite Index slid 2.2 percent, following losses in the last hour of trading.

Brazil Rates

Brazil’s real dropped 0.6 percent against the dollar after the central bank raised its key rate by 50 basis points to 14.25 percent, signaling that borrowing costs were high enough to slow inflation. The increase was in line with the median estimate in a Bloomberg survey of economists.

Commodities are set for the biggest monthly loss since 2011 amid a price collapse that drove oil into a bear market and pushed gold to a five-year low. The Bloomberg Commodity Index is down 9.5 percent in July, the most since September 2011, after dropping to a 13-year low this month.

Increasing interest rates reduce the allure of gold as the metal doesn’t pay interest or give returns like other assets such as equities and bonds. Gold dropped 0.9 percent to $1,086.92 an ounce in London.

All six of the main contracts on the London Metal Exchange declined, with copper losing 1.2 percent.

Nokia jumped 7.5 percent, and Shell gained 4.7 percent after saying it will cut jobs and reduce capital investment. It also agreed to sell a 33.24 percent stake in a Japanese refiner to Idemitsu Kosan Co. for about 169 billion yen ($1.4 billion). Deutsche Bank gained 3.1 percent.

Anheuser-Busch InBev NV declined 4.5 percent after its quarterly earnings missed estimates. Centrica Plc fell 2.3 percent after saying it will cut jobs and shrink its exploration and production business in an effort to cut costs. BT Group Plc lost 1.8 percent after reporting profit in line with estimates.