Bloomberg News

Global Stocks Pare Losses as European Shares Rebound

November 25, 2011

(Corrects attribution on report cited in third paragraph.)

Nov. 25 (Bloomberg) -- Global stocks pared losses as Europe’s benchmark index reversed an earlier drop amid speculation euro-area leaders will do more to fight the debt crisis.

The MSCI All-Country World Index slipped 0.3 percent after losing 0.7 percent earlier. The global benchmark gauge has slumped for 10 straight days, the longest drop since 2008. The Standard & Poor’s 500 Index swung between gains and losses near the 1,162 level. The Stoxx Europe 600 Index was up 0.4 percent, reversing a 1.1 percent slide. The euro slipped 0.7 percent to $1.3254 after losing as much as 1 percent. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments climbed 12 basis points to a record 392.

Euro-area nations are considering dropping private-sector involvement from their permanent bailout fund as they discuss wider treaty changes, Reuters reported, citing European Union officials. German Chancellor Angela Merkel and French President Nicolas Sarkozy “confirmed their support for Italy, saying that they are aware that the collapse of Italy would inevitably lead to the end of the euro,” Italian Prime Minister Mario Monti told a Cabinet meeting, according to an e-mailed statement.

--Editor: Michael P. Regan

To contact the reporter on this story: Michael P. Regan in New York at mregan12@bloomberg.net

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


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