U.S. stocks erased early gains and European equities extended declines, while the euro trimmed its advance against the dollar, amid concern that holders of Greek bonds will suffer larger losses than previously agreed upon.
The Standard & Poor’s 500 Index slipped 0.3 percent at 10:33 a.m. in New York after rallying as much as 0.8 percent earlier. The Stoxx Europe 600 Index lost 1.2 percent. The euro was up 0.2 percent at $1.3608 after rallying 0.8 percent earlier. The S&P GSCI Index of commodities slumped 0.9 percent as oil extended its decline after the U.S. government reported an increase in crude supplies.
The European Commission is resisting a push to impose bigger writedowns on banks’ holdings of Greek government debt than those agreed at a July 21 summit, a European official said. The commission, the European Union’s executive body, opposes ideas that are being floated by some government officials to get banks to accept bigger so-called haircuts and doesn’t want to have talks about any such attempt, the official said on condition of anonymity because the deliberations are private.
Germany and the Netherlands are leading a drive by as many as seven euro-area countries for more private-sector involvement in the second Greek package, the Financial Times reported today.
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