Treasuries pared early gains, with the yield on 10-year notes down less than one basis point at 1.62 percent. The dollar weakened against 10 of its 16 major peers, with the Dollar Index slipping 0.1 percent.
The Stoxx Europe 600 Index rose 0.1 percent, erasing an earlier 0.6 percent loss to close at its highest level since May 2011 as health-care and commodity companies led gains. The FTSE MIB tumbled 2.2 percent in Milan. UniCredit SpA, Italy’s biggest bank, and Intesa Sanpaolo SpA, the second-largest, sank more than 5 percent each.
STMicroelectronics NV climbed 4.4 percent as the European chipmaker struggling with competition from Asia said it will sell its stake in the ST-Ericsson joint venture as part of a strategy to make the company more profitable.
Italy’s 10-year bond yield jumped 29 basis points to 4.82 percent, the biggest increase since Aug. 2. The cost of insuring Italy’s debt jumped, with credit-default swaps climbing 39 basis points to 292, the highest since Nov. 19. The yield on Spain’s 10-year debt climbed 11 basis points to 5.56 percent.
Prime Minister Monti said investors shouldn’t expect the imminent demise of his government to lead to a political vacuum that will fuel market turmoil in Italy. Monti’s predecessor, Silvio Berlusconi, announced he will run for the premiership to roll back Monti’s budget rigor.
German 10-year rates were up one basis point at 1.31 percent. The Markit iTraxx Crossover index of swaps linked to 50 mostly high-yield companies added two basis points to 481.
Industrial metals led gains in the S&P GSCI gauge of raw materials, while declines in natural gas and agricultural commodities left the gauge’s little changed. Gold for immediate delivery climbed for a third day, gaining 0.5 percent to $1,712.60 an ounce.
Oil erased earlier gains, retreating 0.4 percent to $85.56 a barrel, while Brent crude advanced 0.4 percent to $107.39 as OPEC ministers began gathering in Vienna. U.S. natural gas futures fell 3 percent on forecasts of moderate weather next week that may limit heating-fuel demand.
The MSCI Emerging Markets Index rose 0.5 percent to a seven-month high. The Shanghai Composite Index jumped 1.1 percent, with trading volume 86 percent above the 30-day average. The Hang Seng China Enterprises Index of mainland companies climbed 0.7 percent and Russia’s Micex rose 0.4 percent. Brazil’s Bovespa gauge jumped 1.3 percent. The Egyptian pound weakened 0.3 percent to an eight-year low as opponents of President Mohamed Mursi vowed to keep up protests against a draft constitution.