Stocks fall most this year, euro weakens as Spain yields surge

European Movers

Royal Imtech NV tumbled 48 percent in Amsterdam today, the biggest drop since at least 1989, as the Dutch provider of infrastructure for stadiums in last year’s London Olympics forecast writedowns of at least 100 million euros ($136 million) because of alleged irregularities at its Polish business. Swatch Group AG, the largest maker of Swiss timepieces, climbed 5 percent after reporting profit that exceeded analysts’ estimates.

The euro weakened against all 16 major peers, sliding 1.4 percent versus the yen, after completing an eighth consecutive weekly advance in the five days through Feb. 1. The Dollar Index, a gauge of the currency against six major peers, increased 0.5 percent.

Spain’s 10-year yield climbed to the highest level since December and yields on similar-maturity Italian debt rose 14 basis points to 4.47 percent. The nations’ bonds had positive returns for six straight months through the end of January, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.

Market Movers

Strategists from Commerzbank recommend reducing holdings of Spain’s debt, while analysts at BNP Paribas SA, Deutsche Bank AG, Royal Bank of Scotland Group Plc and Morgan Stanley also said the rally in higher-yielding euro-area sovereign bonds may falter.

The S&P GSCI Index retreated 0.7 percent as 16 of its 24 commodities declined, with coffee, oil and cotton dropping at least 1.5 percent to lead losses. Platinum futures rose to the highest in almost 17 weeks as output declined at Anglo American Platinum Ltd., the world’s biggest producer. Palladium extended a rally to the highest since September 2011, and gold gained.

The MSCI Emerging Markets Index lost 0.2 percent. Russia’s Micex Index closed down 0.8 percent as oil declined. Brazil’s Bovespa index slid 1.3 percent and India’s Sensex gauge lost 0.2 percent. The Shanghai Composite Index added 0.4 percent after China’s service industries grew at the fastest pace since August, with volumes 31 percent more than the 30-day average.

Bloomberg News

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