U.S. stocks slumped, following a two- day advance in the Standard & Poor’s 500 Index, as a surge in Italian bond yields to euro-era records bolstered concern that Europe’s sovereign debt crisis is worsening. Bloomberg reports.
Bank of America Corp. (BAC) and Morgan Stanley dropped at least 3.1 percent, following losses in European lenders, after LCH Clearnet SA raised the extra charge it levies on clients for trading Italian government bonds and index-linked securities. General Motors Co. (GM) tumbled 8.6 percent after abandoning its target for European results. Adobe Systems Inc. (ADBE) sank 7.7 percent on plans to cut jobs as it lessens its focus on older products.
The S&P 500 sank 2.2 percent to 1,247.78 as of 12:17 p.m. New York time, after rising 1.8 percent over the previous two days. The Dow Jones Industrial Average lost 238.44 points, or 2 percent, to 11,931.74. The Stoxx Europe 600 Index decreased 1.7 percent, erasing an earlier advance, as the 10-year Italian note yield topped 7 percent for the first time in the euro era.
“It’s just like a scary movie as it never ends,” Keith Wirtz, who oversees $16.7 billion as chief investment officer at Fifth Third Asset Management in Cincinnati, said in a telephone interview. “The overarching problem is that most of the economies in Europe can’t sustain the size of their governments. We’re going to have this headache for a long time to come….”
Read more (and weep) at http://www.bloomberg.com/news/2011-11-09/u-s-stock-futures-tumble-as-italian-bond-yields-surge-to-euro-era-record.html
No comments:
Post a Comment