Stocks, Euro Decline on Debt Concern as Italy Bond Yields Climb
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Stocks and the euro slid as Italy’s borrowing costs increased to a euro-era record at an auction today, deepening concern Europe will struggle to contain its debt crisis. German bunds rose, while copper climbed as Japan’s economy grew for the first time in a year.
The Standard & Poor’s 500 Index lost 1 percent to close at 1,251.78 at 4 p.m. in New York after rallying 2.8 percent in the previous two sessions. The Stoxx Europe 600 Index dropped 1 percent as UniCredit SpA slid on plans to sell shares. The euro weakened 0.9 percent to $1.3628. The yield on the Italian five-year bond rose 17 basis points and Spanish 10-year rates surged to a euro-era record above German yields.