STOCKS – European stocks declined, following their biggest annual advance since 2009, as utilities dropped, while a measure of manufacturing in the euro zone matched estimates. U.S. index futures and Asian shares also retreated.

BONDS – Treasury 10-year yields reached the highest level in more than two years on speculation the U.S. economy will improve enough for the Federal Reserve to end bond purchases in 2014.

COMMODITIES – Copper reached a six-month high in London as manufacturing continued to expand in China, the biggest consumer of the metal, and inventories shrank further. CURRENCIES – The pound rose versus the euro as a report showed U.K. manufacturing expanded for a ninth month in December, adding to evidence the economic recovery accelerated.

ECONOMIC DATA – US Unemployment Claims due at 8:30 and ISM Manufacturing PMI at 10:00 ET.