Dec. 15 (Bloomberg) -- U.S. stocks pared gains and the euro erased its advance as the head of the International Monetary Fund said the European debt crisis is escalating to the point that it will not be solved by one group of countries.
The Standard & Poor’s 500 Index rose 0.4 percent to 1,216.82 at 11:02 a.m. in New York after climbing as much as 1.1 percent earlier. The euro was 0.2 percent higher at $1.3003 after strengthening more than 0.5 percent. Treasuries erased most of their earlier losses, with the 10-year yield little changed at 1.91 percent.
IMF Managing Director Christine Lagarde said at an event in Washington that the “crisis is not only unfolding, but escalating" and cannot be resolved by one group of countries. Stocks and the euro rallied earlier after data on jobless claims and manufacturing signaled a strengthening U.S. economy and Spain sold almost twice as much debt as targeted at an auction.
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