BLBG: Euro Drops, Global Stocks Pare Gains on Concern Greek Aid Will Be Delayed
The euro retreated while global stocks and commodities trimmed earlier gains amid concern European officials will delay Greece’s second bailout.
The euro slipped for a fourth day against the dollar, losing 0.3 percent to $1.3092, and weakened against 14 of 16 major peers as of 9:43 a.m. in New York. The MSCI All-Country World Index added 0.5 percent, erasing yesterday’s 0.4 percent drop. The Standard & Poor’s 500 Index was little changed near the 1,351 level. The cost of insuring against default on European government bonds gained for a sixth day. The S&P GSCI Index rose 0.6 percent, paring an earlier 1.4 percent advance.
Euro area finance officials are investigating delaying parts or all of the second bailout while still avoiding a disorderly default, Reuters reported, citing several European Union sources.
Greece said that Europe’s wealthier countries are “playing with fire” by toying with the idea of expelling it from the 17- nation euro area as talks over a second aid program ran into new
obstacles. Finance Minister Evangelos Venizelos leveled the accusation after a decision slated for tonight on aid totalling 130 billion euros ($171 billion) was postponed until Feb. 20 at the earliest.
To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net