Stocks drop with oil as dollar rebounds on global growth concern

European Markets

The cost of insuring European corporate debt rose for a second day, with the Markit iTraxx Crossover Index of credit- default swaps on 50 mostly junk-rated companies climbing 22 basis points to 553.

The Stoxx Europe 600 Index increased 0.4 percent today and has rallied 18 percent from this year’s low on June 4 as European Central Bank policy makers agreed to implement an unlimited bond-buying program and the Fed unveiled its third round of quantitative easing.

Telekom Austria AG sank 7.2 percent to an 11-year low after cutting its dividend. Continental AG sank 4 percent as Schaeffler AG sold a 10.4 percent stake in the tire producer. Standard Chartered Plc slipped almost 1.6 percent after a report that the bank’s largest shareholder talked to potential buyers for its holding. Daily Mail & General Trust Plc, publisher of the Daily Mail newspaper, advanced 1.5 percent after saying full-year results will be in line with analyst estimates.

The MSCI Emerging Markets Index retreated 0.4 percent. Russia’s Micex Index lost 0.5 percent, while Brazil’s Bovespa sank 2.3 percent for its biggest drop on a closing basis in two months. The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong retreated 0.2 percent and South Korea’s Kospi index lost 0.6 percent.

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