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By Bloomberg

European stocks rose with U.S. equity-index futures, boosted by earnings that exceeded analyst estimates. Speculation the Federal Reserve will increase interest rates as soon as next month sent the dollar to a four-month high and pushed government bonds lower.

The Stoxx Europe 600 Index rose 0.8 percent at 6:05 a.m. in New York and U.S. equity-index futures signaled shares will advance for the first time in four days. The Bloomberg Dollar Spot Index climbed 0.2 percent, while bonds slid from Australia to Britain as Treasuries extended a drop from Tuesday. Oil rose for a second day before U.S. government data that analysts forecast will show crude stockpiles declined.

Banks’ earnings are helping boost European equities after a surge in trading revenue, with Societe Generale SA jumping 8.4 percent after posting its highest profit since the financial crisis. Bond investors will be looking at a private U.S. jobs report for clues on the timing of a rate increase after Fed Bank of Atlanta chief Dennis Lockhart said he would only endorse putting it off should there be a significant deterioration in economic data.

“We’ve had some decent results in banks and it’s turning out to be an all-right earnings season,” said William Hobbs, head of investment strategy at Barclays Plc’s wealth-management unit in London. “People are raising their bets after the Atlanta Fed governor Lockhart comments.”

SocGen Trading

The Stoxx 600 climbed for the sixth time in seven days and all its industry groups up. With a 2.5 percent gain, commodity producers are heading for their biggest jump since July 13.

Legal & General Group Plc and Beiersdorf AG also reported earnings that topped projections.

The Standard & Poor’s 500 Index futures advanced 0.4 percent. 21st Century Fox Inc. and Time Warner Inc. are among 24 S&P 500 companies reporting earnings on Wednesday.

West Texas Intermediate rose 0.4 percent to $45.93 a barrel, after gaining 1.3 percent on Tuesday. Brent added 0.5 percent to $50.26.

Wheat for September delivery climbed 0.3 percent amid concern that wet weather in the northern U.S. plains could delay the harvest. Soybeans gained 0.5 percent.

Bonds cascaded lower as they reacted to the comments from the Fed’s Lockhart: Britain’s 10-year bond yield increased six basis points to 1.93 percent; Germany’s added four basis points to 0.68 percent; Australia’s jumped seven basis points to 2.80 percent. They took their cue from Treasuries, whose 10-year note yields increased seven basis points on Tuesday and added another two on Wednesday to 2.24 percent.

‘Centrist Dove’

“Lockhart is considered a centrist dove,” said Sam Lynton-Brown, a foreign-exchange strategist at BNP Paribas SA in London. “His comments were clearly quite significant because he hadn’t previously stated that September was an appropriate time for the Fed to go so we think it is relatively important.”

There’s about a 75 percent chance the Fed will raise borrowing costs at or before its December meeting, based on the assumption that the effective federal funds rate will average 0.375 percent following the increase, data compiled by Bloomberg show. The odds on a September move are 50-50.

The dollar strengthened for a third-straight day against the euro, adding 0.2 percent to $1.0863, and sending Bloomberg’s index of the U.S. currency’s strength to the highest since March. It was little changed at 124.40 yen.

Real Tumbles

In the past 12 months, no major currency has performed as well as the dollar, as traders gained certainty the Fed would begin raising interest rates. Over that period, Brazil’s real weakened 34 percent versus the greenback and Norway’s krone slumped 24 percent.

South Korea’s won fell 0.6 percent versus the dollar and Malaysia’s ringgit sank to the lowest level since 1998, leading declines in emerging markets. A gauge of 20 currencies dropped for a fifth day to a record low.

The offshore yuan slipped after the International Monetary Fund said China’s currency trails its global counterparts in major benchmarks and “significant work” in analyzing data is needed before deciding whether to grant it reserve status.

Russia’s ruble rose for a second day as a report showed unexpected growth in the country’s purchasing managers’ index for services.

The MSCI Emerging Markets Index of stocks was little changed, slipping 0.1 percent.

Trading Wanes

The Shanghai Composite Index fell 1.7 percent, its fourth loss in five days, as turnover waned and concern grew that unprecedented government intervention is driving away investors. The value of shares traded on the index has fallen 63 percent from this year’s high in June as trading halts, regulatory measures to curb bearish transactions and a suspension of initial public offerings discourages investors.

Hong Kong’s Hang Seng China Enterprises Index gained 0.5 percent.

Legal & General climbed 2.3 percent after the biggest manager of U.K. pension assets reported first-half profit that beat analysts’ estimates amid a jump in inflows. Beiersdorf, the maker of Nivea cream and Labello lip balm, rose 2.7 percent.

Mediobanca SpA rose 2.1 percent after raising its dividend. London Stock Exchange Group Plc gained 1.4 percent as earnings increased. Ryanair Holdings Plc added 2.1 percent after posting an increase in traffic for July.

ING Groep NV fell 3.8 percent as the biggest Dutch lender posted net income that missed analysts’ projections. Neste Oyj lost 7.4 percent as profit fell short of estimates.

Walt Disney Co. dropped 5.6 percent in German trading after posting third-quarter sales that fell short of analysts’ estimates. It also cut its forecast for cable TV profit.