Euro drops with stocks as Cyprus levy triggers bund, gold rally

Gold Rallies

The S&P 500 declined for a second day after rising to within two points of its 2007 record last week. Citigroup Inc. and Bank of America Corp. paced losses in financial shares. Transocean Ltd. slipped in pre-market trading after the offshore-rig contractor said its board opposes the dividend and director nominees proposed by its biggest shareholder, Carl Icahn.

The S&P GSCI gauge of 24 commodities dropped 1.1%, the biggest decline since Feb. 21. Copper fell as much as 2.7% to $7,545.75 a metric ton, the lowest price since Aug. 20 and biggest decline since June 21. Gold rose as much as 1.1% to $1,609.40 an ounce, the highest since Feb. 27. West Texas Intermediate oil dropped 1.4% to $92.14 a barrel.

The MSCI Emerging Markets Index fell 1.4% to the lowest this year. Russia’s Micex Index tumbled the most in five months, dropping 2.7% with trading volume 93% higher than the 30-day average. Moody’s said Russian corporate deposits in Cyprus may total $19 billion.

The ruble weakened 0.9% against the dollar. Hungary’s forint declined 0.6% to a 14-month low versus the euro.

The Hang Seng China Enterprises Index tumbled 2.1%, extending declines from this year’s peak to 12% as slowing growth and accelerating inflation spurred JPMorgan Chase & Co. to downgrade the nation’s shares to underweight. Benchmark gauges in Taiwan, the Philippines, Poland and South Korea fell at least 0.9%.

Bloomberg News

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