Stocks Pare Early Gains, Euro Falls to Lowest Versus Dollar Since January

U.S. stocks pared early gains and the euro slid to the lowest level versus the dollar since January following a report that German Chancellor Angela Merkel is rejecting an increase in the upper limit of funding for Europe’s permanent bailout mechanism.

The Standard & Poor’s 500 Index rose 0.3 percent to 1,239.73 at 10:48 a.m. in New York after climbing as much as 1.1 percent. The euro weakened as much as 0.7 percent to $1.3100 as it fell against 13 of 16 major peers.

Stocks and the euro turned lower as Reuters reported that Merkel has rejected raising the upper limit of funding for the European Stability Mechanism. Earlier gains in equities came after German investor confidence improved and Spain sold more debt than planned at an auction.

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