Euro Strengthens as European Stocks Erase Advance

The euro strengthened, rebounding from a four-day losing streak, as polls showed Greece’s pro-bailout parties gained ground. European stocks erased gains, Spanish bonds declined and yields on German two-year notes fell to a record low.

The euro rose 0.2 percent to $1.2538 at 4 p.m. New York time. The Stoxx Europe 600 Index lost less than 0.1 percent, moving lower after gaining as much as 0.9 percent, as banks slumped. Spain’s IBEX 35 dropped 2.2 percent while Germany’s DAX Index retreated 0.3 percent after adding 1.4 percent. Yields on two-year bunds slipped to 0.027 percent. Spanish bonds fell, pushing 10-year yields to the most relative to benchmark German bunds since the euro was created.