U.S. Stocks Fall With Euro Amid Greek Debt Impasse; Oil Declines

European stocks fell with U.S. equities, while Spanish bonds and the euro tumbled amid growing concern Greece wouldn’t reach a deal to stave off default. Treasuries and oil declined.

The Standard & Poor’s 500 Index lost 0.3 percent at 9:31 a.m. in New York, trimming a weekly gain to 0.5 percent. The Stoxx Europe 600 Index dropped 0.9 percent. The euro weakened 0.3 percent to $ 1.1221. Yields on 10-year Spanish and Portuguese bonds climbed as the euro-area’s higher-yielding assets sold off. Oil fell 1.3 percent. Emerging-market shares pared a fourth weekly decline.

Chancellor Angela Merkel urged Greece to accept the framework for financial aid and euro-area officials demanded a proposal for stabilizing the country’s debt by the end of Friday. The euro tumbled after Merkel said in a speech that a too-strong euro makes it harder for countries “especially Spain and Portugal” to reap rewards from economic reforms.

The dollar held gains and U.S. equity futures remained lower after data showed that wholesale prices in the U.S. rose in May as the biggest jump in fuel costs in at least five years swamped muted advances in other categories.

The euro’s second day of decline cut its weekly advance versus the greenback to 0.8 percent. The U.S. currency strengthened against 15 of 16 major peers, rising 0.2 percent to 123.60 yen. Bloomberg’s dollar gauge gained 0.4 percent, paring its first weekly drop since May 15.

Source: Bloomberg

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