The euro weakened to its lowest level this year, while stocks and commodities slipped, as an unprecedented levy on Cyprus’s bank savings renewed concern about Europe’s debt crisis. German two-year note yields dropped below zero and rates on U.S. Treasuries fell as gold rose.
The 17-nation shared currency sank 1.1 percent to $1.2930 at 4 p.m. in New York. The MSCI All-Country World Index lost 1 percent, retreating from the highest level since June 2008. The Stoxx Europe 600 Index fell 0.2 percent, trimming a plunge of 1.2 percent. The Standard & Poor’s 500 Index retreated for a second day, losing 0.6 percent after dropping 1 percent earlier. Copper tumbled more than 2 percent and gold rose almost 1 percent. Germany’s note yields fell to as low as minus 0.003 percent and 10-year Treasury yields reached a two-week low.