Stocks Drop With Commodities on Economy, Fed; Euro Slides

Global stocks tumbled the most since November and commodities fell as a report signaled the euro-area’s economy contracted more than forecast and concern grew that the U.S. Federal Reserve may slow the pace of stimulus. The euro weakened while German bunds rose with Treasuries.

The MSCI All-Country World Index of equities lost 1.3 percent and emerging-market stocks erased this year’s gains. The Standard & Poor’s Index fell 0.6 percent after the gauge sank 1.2 percent yesterday, the most in three months. The S&P GSCI Index of 24 raw materials retreated 1.6 percent to a one-month low as oil settled at its lowest price of the year. The euro declined 0.7 percent to $1.3185. U.S. 10-year yields slipped four basis points to 1.97 percent as Germany’s 10-year rate slipped eight basis points.