Emerging Market Stocks Slump, Dollar Rises; Treasuries Drop
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Developing nation stocks slid the most since November as accelerating global inflation drove up borrowing costs. U.S. equities erased losses as Egypt President Hosni Mubarak promised to hand authority to his vice president, while Treasuries fell as demand slipped at an auction.
The MSCI Emerging Markets Index sank 1.9 percent at 4 p.m. in New York, while the Standard & Poor’s 500 Index erased a drop of as much as 0.7 percent to close up less than 0.1 percent. The Dollar Index added 0.8 percent, snapping a three-day slump. The Market Vectors Egypt Index ETF, an exchange-traded fund tracking equities in that nation, rallied as much as 6.1 percent before paring its gain to 0.5 percent as Mubarak said he won’t step down before September.