Stocks Tumble, Euro Weakens on Debt Concern; Bond Risk Jumps

Global stocks sank the most in two months, while the euro touched an all-time low versus the Swiss franc and commodities plunged, amid signs Europe’s government-debt crisis is worsening and the economic recovery is slowing. Costs to protect Greek debt from default surged to a record.

The MSCI All-Country World Index sank 1.8 percent at 4:30 p.m. in New York. The Standard & Poor’s 500 Index retreated 1.2 percent and Italy’s FTSE MIB Index slid 3.3 percent. Ten-year bond yields reached euro-era records in Greece and Ireland and climbed in Portugal, Spain and Italy. The euro fell below $1.40 for the first time since March as the dollar strengthened versus all 16 major peers. Oil and copper lost at least 2.4 percent.