U.S. stocks rose, helping global equities rebound from the worst drop since April, following better?than?estimated earnings at Home Depot Inc. and Target Corp. Crude oil rose for the first time in three days, while Treasuries and the dollar fell.

Crude oil rose for the first time in three days, surging the most this month, as the dollar dropped against the euro, bolstering the appeal of commodities. Oil rose for a second day as an industry?funded report showed a drop in crude inventories in the U.S., the world’s biggest energy consumer.

Oil extended its 5.3% surge yesterday after the American Petroleum Institute reported crude stockpiles fell an unexpected 6.13 mn barrels last week.

The dollar fell against the euro for the first time in three days as the increase in German investor confidence added to evidence a global economic recovery is taking shape. The pound increased from near a one?month low versus the dollar after a report showed the U.K. inflation rate was higher in July than economists forecast as the nation’s recession eased. Pacific Investment Management Co., which runs the world’s biggest bond fund, said the dollar will weaken as the swelling U.S. deficit erodes its status as a reserve currency.

American builders broke ground on more single?family homes in July for a fifth straight month as the real?estate industry stabilized further. Work began on single?family dwellings at a 490,000 annual pace last month, up 1.7% from June and the most since October, the Commerce Department reported today in Washington.

China’s domestic oil?product sales dropped “significantly” in July because of weak demand, the China Petroleum and Chemical Industry Association said in its monthly report. Commercial fuel stockpiles rose by a big margin last month, the association said in the report today, without giving figures.

Chinese oil imports may slow after rising 53% this year through July, possibly triggering a reversal in the recent surge in crude prices, the Centre for Global Energy Studies said on Aug. 17.

China’s economic growth may slow to 5% by the first quarter of 2010, Deutsche Bank said in a report on Aug. 17. Growth in fixed?asset investments, industrial production and new lending in July was lower than expected, pointing to fewer project starts and signs inflation may accelerate, the bank said.