NEW YORK (AP) â€" Stocks enervated Wednesday, finale a five-day allege in a S&P 500 index, as new signs of aria emerged in a European banking system. The euro fell to a lowest turn opposite a dollar in scarcely a year and Treasurys rallied.
The Dow Jones industrial average mislaid scarcely 140 points. The S&P is now disastrous for a year again, after hardly branch certain on Friday.
The European Central Bank pronounced banks had parked $590.72 billion with it overnight, leading a record set usually Monday. That means European banks were reduction peaceful to take a risk of creation short-term loans to any other, opting instead to acquire low seductiveness rates from a ECB. The avowal also harm a euro, that fell to $1.291, a lowest turn opposite a dollar given January.
The worrying news from a ECB overshadowed dual successful auctions of Italian government debt. Italy was means to compensate most reduce borrowing rates than final month. The clever direct from investors lifted hopes that Italy would be means to equivocate falling into a financial crisis, as smaller countries like Greece and Portugal have.
John Merrill, arch investment officer during Tanglewood Wealth Management, pronounced markets would sojourn exposed to flare-ups in Europe's long-running financial predicament until leaders there come adult with some-more convincing solutions for profitable down their outrageous debt loads and gripping a 17-nation banking kinship intact.
"We live in a Band-Aid world," Merrill said. "Nobody unequivocally is addressing underlying issues."
European leaders concluded during a limit Dec. 9 to forge closer mercantile ties over a prolonged term, though investors are still disturbed that Greece competence default on a debt or be forced to leave a euro bloc. A Greek exit from a banking kinship would expected means outrageous disruptions for a country's economy and waste for European banks that reason Greek supervision debt. Investors fear that could cascade into another tellurian financial panic, as happened in 2008 following a tumble of a U.S. investment bank Lehman Brothers.
The Dow Jones industrial normal fell 139.94 points, or 1.1 percent, to 12,151.41. Materials and appetite companies led a declines. Alcoa Inc. fell 3 percent and Caterpillar Inc. fell 2.4 percent.
With usually dual some-more trade days left in a year, markets were thinly populated in a holiday-shortened week. Shares traded on a New York Stock Exchange totaled 2.3 billion, reduction than half of a common volume.
The S&P 500 fell 15.79 points, or 1.3 percent, to 1,249.64. The Nasdaq combination declined 35.22 points, or 1.3 percent, to 2,589.98.
The produce on a 10-year Treasury note fell to 1.93 percent from 2 percent late Tuesday as investors changed income into reduction unsure assets.
The Bank of Italy lifted $11.8 billion in dual bond auctions, reflecting financier capitulation of a country's recently upheld purgation measures. The produce on Italy's six-month check charity was half a seductiveness rate a nation paid in a identical auction final month. The produce on a country's 10-year bond remained dangerously high, however, during 6.93 percent. It had risen to 7 percent Tuesday, a turn that is deliberate unsustainable.
Italy is a euro zone's third-largest economy and is deliberate too large to save underneath a euro zone's stream bailout funds. Investors have grown aroused over a past few months that Italy will find it formidable to compensate off a large debts, that mount during around $2.5 trillion.
The worries were reflected in U.S. bank stocks. Bank of America Corp. fell 3.5 percent, while Regions Financial Corp. fell 2.7 percent.
In other corporate news:
â€" Sandridge Energy Inc. batch declined 4.4 percent on news that it is offered drilling rights in dual states to a Spanish appetite company, Repsol YPF.
â€" Cavium Inc. fell over 1 percent, a day after a chipmaker pronounced a fourth-quarter formula will tumble next a prior forecast.
News referensi http://news.yahoo.com/stocks-slide-p-500-turns-negative-211005447.html
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