Euro, Stocks Retreat With Italy, Spain Bonds as ECB Disappoints

The euro sank to a one-month low as Spanish and Italian bonds plunged, while stocks retreated, after the European Central Bank disappointed investors anticipating a more aggressive effort to fight the debt crisis.

The euro tumbled 1.1 percent to $1.2390 at 4 p.m. in New York and the Dollar Index surged the most this year. Ten-year Spanish and Italian bond yields increased at least 21 basis points. The Standard & Poor’s 500 Index lost 0.5 percent after slumping 0.8 percent earlier. The S&P GSCI Index of commodities rose 0.4 percent as crops rallied. Ten-year Treasury note rates slipped three basis points to 1.60 percent as trading resumed following the Independence Day holiday.