Stocks sank and the euro weakened, while a surge in German bunds sent yields down the most on record, amid concern Europe’s bailout of Greece will unravel. The dollar and U.S. Treasuries rallied.
The MSCI All-Country World Index fell 3.4 percent at 4:32 p.m. in New York as gauges in Italy, France and Germany plunged at least 5 percent. The Standard & Poor’s 500 Index closed down 2.8 percent at 1,218.28. German 10-year yields fell as much as 29 basis points to 1.73 percent. Rates on 10-year Italian and French debt touched euro-era records above German debt. The euro fell 1.2 percent to $1.3696. Copper and oil paced losses in commodities after China’s manufacturing growth cooled.