Stocks drop with commodities while U.S. Treasuries, dollar rise

Greek Talks

European shares also rebounded as Greek Finance Minister Yannis Stournaras told a European Parliament hearing that yesterday’s euro-area meeting was “constructive” and he expects an accord to be reached on rescue funding at a Nov. 20 meeting.

Euro finance chiefs left unanswered how they’ll fill a fresh hole in Greece’s balance sheet without tapping their own bailout-weary taxpayers for money after giving the country two extra years to trim its budget deficit.

In the latest compromise in three years of crisis fighting, creditors led by Germany opted late yesterday to keep money flowing to Greece instead of risking a default that could lead to the nation’s exit from the euro and stir more turmoil for the countries that remain in the single-currency bloc.

German Confidence

German investor confidence unexpectedly declined in November, according to a report from the ZEW Center for European Economic Research in Mannheim. Its index of investor and analyst expectations fell to minus 15.7 from minus 11.5 in October. Economists forecast an increase to minus 10, according to the median of 43 estimates in a Bloomberg News survey.

Emerging market stocks fell for a fourth day, the longest streak since August. Energy and technology companies led losses amid speculation China will expand a property tax trial. Gerdau SA, Latin America’s largest steelmaker, snapped a two-day rally as Centrais Eletricas Brasileiras SA, Brazil’s state-run power utility, plummeted to an eight-year low. OAO Gazprom, Russia’s biggest company, sank 3.6 percent to the lowest since May. Evergrande Real Estate Group Ltd. and Poly Property Group Ltd. retreated in Hong Kong.

‘High Alert’

China’s housing ministry is on “high alert” if both transaction volume and home prices increase “substantially,” Xinhua News Agency reported, citing Minister of Housing and Urban-Rural Development Jiang Weixin.

The MSCI Emerging Markets Index lost 0.7 percent as the Shanghai Composite Index dropped 1.5 percent, while Taiwan’s Taiex slid 1.8 percent with trading volume 31 percent higher than the 30-day average. South Korea’s Kospi Index slipped 0.6 percent.

Bloomberg News

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