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Stocks Fall, Credit Risk Rises to Record on Merkel Bond Comments

Stocks fell, Italian bonds declined and the cost of insuring European government debt against default rose to a record after German Chancellor Angela Merkel ruled out joint euro-area borrowing.

The MSCI All-Country World Index retreated 0.2 percent at 5 p.m. in New York. The yield on Italy’s 10-year bonds climbed above 7.1 percent. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose two basis points to 381. The Stoxx Europe 600 Index fell 0.2 percent and Standard & Poor’s 500 Index futures rose 0.3 percent. U.S. markets were closed today for Thanksgiving. The euro was little changed against the dollar at $1.3347.