Skip to content
Subscriber Only

Stocks Drop on Korea Tensions, Europe Debt Woes; Dollar Rises

Stocks dropped, extending a third straight weekly decline for the MSCI World Index, as tensions in Korea mounted and concern deepened that Europe’s debt crisis will worsen. The cost of insuring against defaults by Portugal, Spain and Ireland surged and the dollar strengthened.

The MSCI World slipped 1.1 percent at the 1 p.m. close of trading in New York and the Standard & Poor’s 500 Index lost 0.8 percent. South Korea’s Kospi Index fell 1.3 percent and Hungary’s BUX Index slid 2.8 percent. The dollar rose 1 percent to $1.3233 per euro, a two-month high, as it strengthened against all 16 major peers. The Thomson Reuters/Jefferies CRB commodities index slipped 0.4 percent.