Bloomberg News

U.S. Stocks Fluctuate, European Shares, Euro Fall on Debt Talks

October 20, 2011

Oct. 20 (Bloomberg) -- U.S. stocks were little changed while European shares and the euro fell as investors watched developments in talks to boost the euro-region’s bailout fund.

The Standard & Poor’s 500 Index climbed 0.1 percent at 9:34 a.m. in New York. The Stoxx Europe 600 Index dropped 0.7 percent. The euro lost 0.1 percent to $1.3749 after climbing as much as 0.6 percent earlier.

European stocks extended losses and the euro reversed gains as Die Welt reported that the German government hasn’t ruled out postponing the debt-crisis summit scheduled for Oct. 23 in Brussels due to stalling negotiations. Die Welt cited unidentified people close to the ruling coalition. U.S. futures and the euro rallied earlier, and European shares pared losses, as draft guidelines for changes to the euro-region bailout fund showed that credit lines for some of the most-indebted nations may be boosted.

“Germany is the key to Europe’s success or not,” Richard Sichel, who oversees $1.6 billion as chief investment officer at Philadelphia Trust Co., said in a telephone interview. “We don’t know what a delay of the talks could mean. The whole hope is to see how they are going to tackle their crisis so that uncertainty is removed.”

--Editor: Michael P. Regan

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net


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