Economics
Stocks Drop, Dollar Gains on Korea Clash, Europe Debt Concerns
This article is for subscribers only.
Stocks sank, dragging the MSCI Emerging Markets Index down the most in five months, while the dollar and the Swiss franc rallied as fighting broke out between North and South Korea and concern grew Europe’s debt crisis will spread. Copper slid as China’s banks approached lending limits.
The MSCI gauge of stocks in developing nations lost 2.6 percent and the Standard & Poor’s 500 Index slid 1.4 percent at 4 p.m. in New York. The dollar and franc appreciated against most peers. South Korean won forwards slipped the most in six months. Ten-year Treasury yields decreased 4 basis points, while credit default swaps protecting European government debt rose to a record. Copper, lead and zinc slumped, while gold advanced.