Nov. 10 (Bloomberg) -- The yen and the dollar advanced against high-yielding currencies and commodities declined as Fitch Ratings said the U.K.’s sovereign credit rating is at risk and German investor confidence deteriorated more than forecast.

The yen rose against all 16 of the most-traded currencies tracked by Bloomberg at 10:19 a.m. in London. The Dollar Index, a six-currency gauge of the currency’s performance, gained 0.1 percent. Crude oil, gold, copper and wheat declined in trading from Chicago to London. Futures on the Standard & Poor’s 500 Index dropped 0.4 percent.

Fitch said the U.K. is most at risk of losing its AAA rating and that Japan’s recovery is likely to be “modest and fragile.” The ZEW Center for European Economic Research in Mannheim reported that its sentiment index fell for a second month in November as the prospect of expiring government stimulus programs and rising unemployment tempered the outlook for economic growth.

“The Fitch report shows that the fiscal expansion comes at increasingly high costs,” Hans-Guenter Redeker, head of global currency strategy at BNP Paribas, wrote in a note to clients. “This economy desperately needs to move its resources into the supply side, into the corporate sector,” he said in a telephone interview.

The pound tumbled against all 16 most actively traded currencies monitored by Bloomberg, sliding to $1.6654, from $1.6759. The euro fell against the yen and the dollar after the ZEW report before trading little changed.

Treasury Sales

The U.S. Treasury is selling a record $25 billion of 10- year notes today, and is scheduled to auction $16 billion of 30- year bonds in two days. It issued $40 billion of three-year securities yesterday. The yield on the 10-year note fell 1 basis point to 3.48 percent, according to BGCantor Market Data.

Gold for immediate delivery slipped 0.1 percent to $1,100.40 an ounce in London, dropping from a record yesterday. Copper retreated 0.5 percent and nickel declined 2.2 percent. Wheat dropped 1.3 percent to $5.135 a bushel. Crude oil for December delivery fell 0.5 percent to $79.04 a barrel.

The Dow Jones Stoxx 600 Index of European stocks fluctuated, rising and dropping as much as 0.3 percent. HSBC Holdings Plc, the region’s biggest bank, climbed 3.6 percent in London after saying third-quarter pretax profit was “significantly” higher than a year ago. Barclays Plc, the U.K.’s second-largest bank, said third-quarter profit fell 54 percent. The stock slipped 2.1 percent in London.

Asian Gains

The MSCI Asia Pacific Index gained 0.4 percent after the China Association of Automobile Manufacturers said yesterday that passenger-car sales surged 76 percent in October.

Futures on the Standard & Poor’s 500 Index indicated the benchmark gauge for U.S. equities may retreat for the first time in seven days. The S&P 500 has climbed 62 percent since March 9 as the U.S. government and Federal Reserve lent, spent or guaranteed $11.6 trillion to combat the first global recession since World War II and unlock credit markets.

The MSCI Emerging Markets Index rose 0.3 percent, extending its five-day rally to 6.6 percent, the biggest surge since July. The index may rise 25 percent by the end of next year as earnings soar and investors allocate more money to the fastest growing economies, Morgan Stanley’s chief Asian and emerging- market strategist Jonathan Garner said in a report.

Egypt’s EGX 30 Index jumped 2.1 percent as Credit Suisse Group AG said it was keeping an “overweight” on the stocks because the country has had the strongest economic growth in “mainstream” Europe, Middle East and Africa region.

To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net

Last Updated: November 10, 2009 05:28 EST