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Stocks Fall, Bond Risk Rises to Record
Before Europe Debt Sales
Stephen Kirkland and Rita Nazareth
Bloomberg
January 10, 2011
Stocks fell worldwide for a fourth day,
the longest losing streak since November,
and the cost of insuring European sovereign
debt against default rose to a record as
Portugal, Spain and Italy prepared to borrow
at least $43 billion this week. Oil surged.
The MSCI All-Country World Index of
shares in 45 nations lost 0.7 percent at
10:55 a.m. New York time. The Standard
& Poor’s 500 Index slid 0.5 percent to
1,265.74. Credit-default swaps on Portugal
jumped 12 basis points to 550, according
to CMA, and the Markit iTraxx SovX Western
Europe index climbed a fourth day, reaching
a record high. Oil rose as much as
2.2 percent after a leak at an Alaskan pipeline.
Europe’s most indebted governments will
hold their first bond auctions this week for
2011, a year when they have to raise about
$1 trillion. Germany may be softening its
opposition to expanding the 750 billion-euro
($966 billion) rescue facility for the region’s most-indebted countries, after
Chancellor Angela Merkel’s chief spokesman,
Steffen Seibert, declined to repeat the
nation’s objections to restocking the fund.
Before Europe Debt Sales
Stephen Kirkland and Rita Nazareth
Bloomberg
January 10, 2011
Stocks fell worldwide for a fourth day,
the longest losing streak since November,
and the cost of insuring European sovereign
debt against default rose to a record as
Portugal, Spain and Italy prepared to borrow
at least $43 billion this week. Oil surged.
The MSCI All-Country World Index of
shares in 45 nations lost 0.7 percent at
10:55 a.m. New York time. The Standard
& Poor’s 500 Index slid 0.5 percent to
1,265.74. Credit-default swaps on Portugal
jumped 12 basis points to 550, according
to CMA, and the Markit iTraxx SovX Western
Europe index climbed a fourth day, reaching
a record high. Oil rose as much as
2.2 percent after a leak at an Alaskan pipeline.
Europe’s most indebted governments will
hold their first bond auctions this week for
2011, a year when they have to raise about
$1 trillion. Germany may be softening its
opposition to expanding the 750 billion-euro
($966 billion) rescue facility for the region’s most-indebted countries, after
Chancellor Angela Merkel’s chief spokesman,
Steffen Seibert, declined to repeat the
nation’s objections to restocking the fund.
