European Bonds Gain on Stimulus Bets as Emerging Stocks Advance.

http://www.bloomberg.com/news/2014-08-26/most-asian-index-futures-rise-as-s-p-500-ends-above-2-000.html

European bonds advanced, pushing 10-year (GSPG10YR)yields from Germany, Italy,Spain and France to record lows, as economic data fueled stimulus bets. Emerging-marketstocks headed for a three-year high, the dollar weakened and commodities rose.

Spanish 10-year (GFRN10)yields dropped eight basis points to 2.09 percent at 11 a.m. inLondon, after touching 2.083 percent, the lowest since Bloomberg started tracking the data in 1993. The yield onsimilar-maturity German bonds fell to a record 0.915 percent. The dollar weakened against all but one of its major peers. The MSCI Emerging Markets Index added 0.3 percent, trading at the highest level since August 2011. The Stoxx Europe 600 Index was little changed with Standard & Poor’s 500 Index futuresafter the U.S. measure closed above 2,000 for the first time. Gold rose 0.4 percent.

French manufacturing confidence fell, while a gauge of German consumer sentiment dropped more than analysts estimated, adding to speculation that euro-area stimulus will be bolstered. Yields on 10-year Austrian, Belgian, Dutch, Finnish and Irish debt dropped to all-time lows. Russian PresidentVladimir Putin said talks with his Ukrainian counterpart over separatist fighting that’s killed more than 2,000 people were “positive.”

“It’s pretty straightforward: more and more investors are expecting something big to be announced at the beginning of September,” said Felix Herrmann, an analyst at DZ Bank AG in Frankfurt. “At the moment they are just continuing the hunt for yield.”

Euro, Dollar

The U.S. currency fell 0.1 percent to $1.3183 per euro after touching $1.3153, the strongest level since Sept. 6, and declined 0.1 percent to 103.92 yen.

The Stoxx 600 was little changed today after it climbed 1.8 percent in the past two days, closing at its highest level since July 24.

Travel and leisure shares advanced the most among 19 industry groups. Deutsche Lufthansa AG rose 2.9 percent, and Ryanair Holdings Plc climbed 3.1 percent after the discount airline said it will start a service for business travelers.

Telecom Italia SpA advanced 3.1 percent after Oi SA said it is reviewing options for buying a stake in Tim Participacoes SA. Portugal Telecom SA, which is merging with Oi SA, led its country’s equities higher as it gained 6.2 percent.

U.K. water supplier United Utilities Group Plc (UU/) fell 1.7 percent after Bank of America Corp. and RBC Capital Markets LLC downgraded the shares.

Pedestrians carry shopping bags while walking on Rodeo Drive in Beverly Hills, California. The Conference Board’s U.S. consumer confidence index rose to 92.4 in August, the highest since October 2007.