Economics
Stocks, Euro Drop Amid European Political Concern
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Stocks plunged worldwide and the euro weakened as Europe’s backlash against budget cuts gained momentum, while commodities retreated as manufacturing shrank.
The Standard & Poor’s 500 Index fell 0.8 percent at 4 p.m. New York time, trimming its drop from 1.4 percent. The Stoxx Europe 600 Index sank 2.3 percent to a three-month low as gauges for eight nations, including Sweden, Germany, France and the Netherlands decreased 2.5 percent or more. The euro lost 0.5 percent versus the dollar and 1 percent against the yen. The cost of insuring against a European sovereign default climbed to the highest level in four weeks. The S&P GSCI Index of 24 raw materials slumped 0.3 percent. Treasuries rose a fourth day.