SF: European Stocks Erase Gains, Two-Year Bund Yields Sink to Record
May 28 (Bloomberg) -- European stocks erased gains, the euro pared its advance against the dollar and yields on German two-year notes sank to a record low.
The Stoxx Europe 600 Index rose less than 0.1 percent to 242.55 at 2:32 p.m. London time after climbing as much as 0.9 percent. Standard & Poor's 500 Index futures trimmed their advance to 0.5 percent from 1 percent. The euro added 0.2 percent to $1.254, breaking a four-day losing streak, after strengthening to $1.2625. Yields on two-year bunds slipped to 0.027 percent. Spain's Bankia SA lost 11 percent.
Equities had risen in Europe as Greek opinion polls showed growing support for parties backing a bailout plan. Bankia tumbled as the lender nationalized by Spain this month seeks 19 billion euros ($23.8 billion) of state funds. U.S. stock exchanges were shut for Memorial Day. The IBEX 35 Index of Spanish stocks retreated 2.1 percent while Germany's DAX Index slipped 0.2 percent after rallying as much as 1.4 percent.
--With assistance from Chua Baizhen in Beijing, Lynn Thomasson in Hong Kong and Paul Armstrong, Claudia Carpenter, Lars Paulsson, Andrew Rummer, Daniel Tilles, Jason Webb and Stephen Kirkland in London. Editor: Nick Baker
To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
