European Stocks Decline for Second Day on Spat – Bloomberg

European stocks declined as a renewed Franco-German spat fueled concern that euro-area leaders can’t agree on how to tackle the debt crisis. U.S. index futures advanced and Asian shares fell.

Telecom Italia SpA (TIT), Italy’s biggest phone company, dropped 1.3 percent after saying it sees a dip in the country’s telecommunications market next year. Mining companies fell as copper headed for a third weekly loss.

The benchmark Stoxx Europe 600 Index dropped 0.5 percent to 232.79 at 10:41 a.m. in London. The gauge has retreated 3.4 percent this week as Italian and Spanish borrowing costs surged and Germany and France differed on the role of the European Central Bank in ending the crisis.

“The ECB remains the only institution that can credibly counter a collective loss of confidence on such a scale,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, said in an e-mail. “Yet the longer its intervention in the bond markets of Italy and Spain remains limited and intermittent, the greater the risk that the crisis will escalate further.”

via European Stocks Decline for Second Day on Spat – Bloomberg.


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