Stocks drop with commodities on European crisis; euro weakens

European Stocks

CGGVeritas declined 5.3 percent after the world’s largest surveyor of oilfields agreed to buy Fugro NV’s seismic division for 1.2 billion euros ($1.6 billion). Fugro rose 2.1 percent in Amsterdam. QinetiQ Plc, the military researcher split off from the U.K. Ministry of Defense, jumped 6.5 percent after saying its performance in the first half was stronger than forecast.

The euro dropped as much as 1.1 percent to 100.36 yen.

“A period of consolidation in the month ahead looks the more likely outcome,” said George Boubouras, Melbourne-based head of investment strategy at UBS AG’s Australian wealth management unit. The Swiss bank has about $1.5 trillion in assets under management. “In Europe, there will continue to be some lingering challenges.”

Australia’s dollar weakened 0.3 percent to $1.0422. New Zealand’s currency declined 1 percent to 82.12 U.S. cents.

The yield on 10-year Treasuries slipped three basis points to 1.72 percent, while rates on German bunds of similar maturity declined three basis points to 1.56 percent.

Crude in New York slipped to $91.93 a barrel and copper declined 1.5 percent. Arabica coffee dropped 0.6 percent after rising 2.8 percent on Sept. 21.

The MSCI Emerging Markets Index dropped 0.2 percent. The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong slipped 0.4 percent. PT Bumi Resources tumbled 19 percent leading Indonesian stocks lower after a shareholder started a probe into the company’s finances. Vietnam’s VN Index sank 1.3 percent after inflation quickened for the first time in more than a year.

Bloomberg News

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