By Stephen Kirkland June 10 (Bloomberg) -- U.S. stocks extended a sixth straight weekly decline, the longest slump for the Dow Jones Industrial Average since 2002, while Treasuries and the yen gained amid concern the global economic recovery is slowing. The euro weakened while Greek and Portuguese bonds fell. The Dow lost 67.66 points, or 0.6 percent, to 12,056.7 at 9:37 a.m. in New York and the Standard & Poor’s 500 Index fell 0.5 percent. Ten-year Treasury yields fell four basis points to 2.96 percent, while the yen rose against all 16 major peers. The euro weakened 0.5 percent to $1.4432. The yield on the 10-year Portuguese bond jumped 13 basis points and the cost of insuring Greek and Portuguese debt rose to all-time highs amid lingering concern over Europe’s debt crisis. Copper and oil declined. China reported a smaller-than-estimated trade surplus today as export growth slowed, according to the customs bureau. Federal Reserve Vice Chairman Janet Yellen said yesterday the U.S. housing market will undergo a “long, drawn-out recovery.” German Finance Minister Wolfgang Schaeuble said bondholders should assume a “fair” share of further Greek aid, a day after European Central Bank President Jean-Claude Trichet rejected any direct ECB participation in a second Greek bailout. There are “monsters in the form of the U.S. economic soft patch becoming a permanent downturn, in the form of Europe’s leaders arguing so much they forget that saving Greece is really, really important,” Kit Juckes, head of foreign-exchange strategy at Societe Generale SA in London, wrote in a report today. “As long as we roll from one fear to another, I can’t see how markets get easier.” Sulzer, Hermes Two stocks fell for each that gained in the Stoxx 600. The gauge has dropped 1.2 percent this week, its sixth straight weekly decline for its longest slump since July 2008. Sulzer AG sank 5.9 percent after the Swiss pumpmaker said Chief Executive Officer Ton Buechner will leave to join Akzo Nobel NV. Hermes International SCA slipped 2.8 percent as LVMH Moet Hennessy Louis Vuitton SA said it doesn’t intend to make a takeover bid. The MSCI Emerging Markets Index retreated 0.8 percent to the lowest intraday level in two weeks, with the MSCI China Index dropping 0.8 percent. Investors withdrew $222 million from emerging-market equity funds in the week ended June 8, Citigroup Inc. said in a report. South Korea, India South Korea’s Kospi Index sank 1.2 percent and the won climbed against all but one of its most-traded counterparts after the central bank raised interest rates for a third time this year. India’s Bombay Stock Exchange Sensitive Index declined 0.6 percent as a report showed factory production slowed in April. Taiwan’s Taiex Index lost 1.8 percent, led by HTC Corp., after Goldman Sachs Group Inc. cut shares of the handset maker from its “conviction buy” list. Thailand’s SET Index climbed 0.3 percent. Mark Mobius, who oversees about $50 billion as the executive chairman of Templeton Emerging Markets Group, said he’s optimistic on Thai shares even after the SET index sank this month on concern July’s elections will spur political turmoil. Copper fell 1.3 percent and crude oil declined 1.8 percent to $100.13 a barrel. The yen advanced 0.3 percent against the dollar and gained 0.7 percent versus the euro. The Dollar Index, which tracks the U.S. currency against those of six trading partners, rose 0.3 percent, climbing for the third consecutive day, the longest run since Feb. 14. U.K. Manufacturing The pound declined 0.7 percent against the dollar as a report showed U.K. manufacturing growth fell more than economists forecast in April. The extra yield investors demand to hold Portuguese 10-year bonds instead of benchmark German bunds climbed to 744 basis points, a euro-era all-time high. The Greek-German spread widened 11 basis points, with the Spanish-bund gap increasing six basis points. Credit-default swaps insuring Greece’s government debt climbed 23 basis points to a record 1,544, while Portugal’s rose eight basis points to an all-time high of 727, according to CMA. The Markit iTraxx SovX Western Europe Index of contracts on 15 governments was up 2.5 basis points to 204, the highest since Jan. 12. --With assistance from Claudia Carpenter, Michael Patterson, Abigail Moses, Andrew Rummer and Dan Tilles in London. Editor: Michael P. Regan CN CN CN CN CN To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Stuart Wallace at swallace@bloomberg.net

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