European Stocks Drop as Italian Yilds Surge; TDC Retreats

European stocks fell to a three-week low, led by a selloff in banks, as the leader of Italy’s Democratic Party ruled out the possibility that rival politicians will agree on a broad coalition government.

Banca Monte dei Paschi di Siena SpA and Banco Popolare SC slid more than 1 percent as Italian bond yields surged. TDC A/S dropped 1.6 percent as its private-equity owner sold another 6.8 percent stake in the Danish phone company. Safran SA slipped 1.5 percent as the French government sold 13 million shares in the maker of aircraft engines.