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By Bloomberg

The euro strengthened while stocks in the region dropped with U.S. equity-index futures as the European Central Bank met on monetary policy. Silver fell for a seventh day and the ruble weakened to a record.

The 18-nation shared currency rose 0.2 percent to $1.2511 at 9:55 a.m. in London. The Stoxx Europe 600 Index retreated 0.5 percent and Standard & Poor's 500 Index futures fell 0.2 percent. The yield on 10-year Italian bonds dropped three basis points to 2.40 percent and the Spain's rate declined five basis points to 2.14 percent. Silver lost 0.2 percent. Russia's ruble weakened for a fourth day.

While the ECB is expected by most economists to leave rates unchanged, investors will be looking for signs of more stimulus from President Mario Draghi in a bid to ward off deflation and revive growth. Factory orders in Germany, the euro-area's largest economy, rose less than forecast in September, a report showed today. In the U.S., companies added more workers in October, according to private payroll data yesterday before the Labor Department's monthly report tomorrow.

"There's no great incentive for the ECB to explicitly talk the euro down or step up its rhetoric today," said Roberto Mialich, a senior currency strategist at UniCredit Bank AG in Milan. "Tomorrow's payrolls numbers in the U.S. will be a more critical driver for the euro at this juncture."

The euro climbed versus 13 of its 16 major counterparts, climbing from near the two-year low of $1.2440 set on Nov. 3. It added 0.1 percent to 143.26 yen, reaching the strongest level since Jan. 2. The yen was little changed versus the dollar after depreciating as much as 0.8 percent to 115.52, the weakest level since November 2007.

Volatility Bets

Traders raised expectations for currency price swings to the highest in more than a year after an unexpected stimulus boost by the Bank of Japan last week roiled markets and prompted speculation its European counterpart will respond. Deutsche Bank AG's Currency Volatility Index climbed to 8.6 percent yesterday, the highest since September 2013.

The Stoxx 600 is heading for its first weekly loss in three, dragged down by European oil-industry shares.

Credit Agricole SA fell 4.8 percent as slow economic growth led to a decline in quarterly retail-banking profit at France's third-largest lender.

Cable & Wireless Communications Plc dropped the most since August 2012 after saying it will sell new shares to pay for its $1.85 billion acquisition of Columbus International Inc.

Munich Re lost 1.6 percent as lower returns from fixed- income investments pushed the world's biggest reinsurer to post quarterly earnings below projections.

Adidas Beats

Adidas AG rose 4.2 percent after posting third-quarter profit that beat analysts' estimates.

The MSCI Emerging Markets Index fell for a fourth day, slipping 0.1 percent, as declines by technology companies offset a rebound in commodity producers.

The ruble weakened 1 percent to 45.3820 per dollar, after reaching a record 45.4205. The ruble slid 2.6 yesterday even after the Bank of Russia shifted its intervention policy, saying it would offer as much foreign currency as it deemed necessary.

The Micex advanced for a ninth day, climbing 1.1 percent. Stocks are headed for their longest run of gains since August as a weaker ruble boosts earnings prospects for exporters.

The U.S. and Germany warned yesterday that Russia risked more sanctions over the conflict in Ukraine as fighting shook rebel-held areas in the east and a two-month-old truce was at risk of unravelling.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong fell for a second day, dropping 0.5 percent. The Shanghai Composite Index advanced 0.3 percent.