European stocks dropped
CAC 3,092.94 -50.36 -1.60%FTSE 5,507.22 -60.12 -1.08%DAX 5,880.81 -80.63 -1.35%
European stocks dropped after the spread between Italian and German bond yields widened to the most since the introduction of the euro and Italy’s credit-default swaps jumped to a record.
Italian 10-year bonds underperformed similar-maturity benchmark German bunds, driving the difference in yield between the securities to 500 basis points for the first time since before the euro was introduced in 1999.
Shares of Deutsche Post AG jumped 4.2% after company raised its full-year forecast.
Shares of HSBC dropped 4.5% as the bank said pretax profit at its investment bank led by Samir Assaf fell to about $1 billion in the third quarter from a year-earlier.