Skip to content
Subscriber Only

Stocks, Euro, Italy Bonds Drop on Contagion Concern; Gold Jumps

Global stocks fell to the lowest level in almost two months, the euro slid and Italian and Spanish bond yields climbed amid concern the European debt crisis is worsening. Gold and the dollar advanced on demand for assets considered the safest, while Treasuries pared gains.

The MSCI World Index lost 0.6 percent and the Standard & Poor’s 500 Index fell 0.6 percent, paring its slide from 1.2 percent after President Barack Obama signaled willingness to work with Republicans to extend some tax cuts. The euro dropped below $1.30 for the first time since September. Costs to insure the debt of Italy, Spain, Portugal and Ireland reached records and yields on Belgium’s government bonds surged. After the U.S. close, S&P 500 futures fell 0.2 percent at 7 p.m. New York time while stock indexes for Japan and Australia were little changed.