U.S. stocks rose, propelling the Standard & Poor’s 500 Index to the biggest weekly advance since March, after Goldman Sachs Group Inc. and Intel Corp. beat analysts’ estimates and reports on manufacturing and retail sales signaled the economy is improving.

Second-quarter US gross domestic product figures are likely to be better than the first quarter, showing some signs of improvements in the economy, White House Budget Director Peter Orszag said on Sunday. First quarter GDP, which measures total output within US borders, contracted slightly less at a 5.5 per cent annual rate instead of the previously reported 5.7 per cent, the US Commerce Department said on June 25.

Asian stocks advanced, led by commodity and technology shares, after oil and metal prices gained and U.S. housing starts unexpectedly rose.

Brazil’s Bovespa index rose, capping the biggest weekly gain in more than two months, after Morgan Stanley raised the country’s stocks to “overweight” on a stabilizing economy and an improving outlook for commodities.

Ernst & Young LLC’s Item Club today raised its forecast for British gross domestic product in 2010 to show expansion. The British economy will shrink 4.4% in 2009 before recovering in 2010, according to Ernst & Young’s Item Club. The forecast by the research group, which uses the same economic model as the UK treasury, is worse than the 3.5% contraction predicted in April.

Iraq's parliament has the authority to block a contentious oil deal with BP and China's CNPC, despite the oil ministry's insistence  lawmakers can do nothing to derail the agreement, a top lawmaker said. "The government believes that such a subject is included in its authorities, according to existing law, but if parliament finds these contracts or this (bidding) round ... are not beneficial, parliament can prevent the government," parliament speaker Ayad al-Samarai said in an interview on Sunday.

The yen declined to a two-week low against the euro on speculation European and U.S. reports this week will show the global recession is easing, damping demand for Japan’s currency as a refuge.

The yen fell against all of its 16 most-active counterparts on prospects U.S. companies reporting results this week will announce stronger earnings, spurring investors to buy higher- yield assets.

The dollar fell to the lowest in two weeks versus the euro on speculation commercial lender CIT Group Inc. is moving closer to avoiding bankruptcy, reducing the appeal of safer assets such as the U.S. currency.