Stocks, Commodities Drop on Europe-Debt Concern; Treasuries Fall

The Standard & Poor?€™s 500 Index rose 0.4 percent to 1,166.89 at 9:50 a.m. in New York, paring its weekly retreat to 4 percent. The Stoxx Europe 600 Index was up 0.9 percent, reversing a 1.1 percent slide. The euro slipped 0.6 percent to $1.3263 after losing as much as 1 percent. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments climbed 12 basis points to a record 392.

Euro-area nations are considering dropping private-sector involvement from their permanent bailout fund as they discuss wider treaty changes, Reuters reported, citing European Union officials. German Chancellor Angela Merkel and French President Nicolas Sarkozy ?€œconfirmed their support for Italy, saying that they are aware that the collapse of Italy would inevitably lead to the end of the euro,?€ Italian Prime Minister Mario Monti told a Cabinet meeting, according to an e-mailed statement.

European stocks and U.S. index futures slid earlier as Italy had to pay almost 7 percent to sell six-month bills at an auction today, nearly twice the rate it paid a month ago and the highest since 1997, spurring concern Europe?€™s debt crisis was spreading to the core nations.

--With assistance from Paul Armstrong and John Deane in London, Daniel Tilles in Paris and Michael P. Regan in New York. Editor: Michael P. Regan

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Authors: Commodities - Yahoo! News Search Results

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