Currencies

• EUR/USD The euro declined for a second day before a report forecast to show German investor confidence fell to a three-year low as Europe's debt crisis threatens to curb economic growth.
  • The euro fell 0.2 percent to $1.36 at 1:56 p.m. in Tokyo from the close in New York yesterday, when it slid 0.9 percent.

• NZD/USD The New Zealand dollar declined for a second day as concern Europe will struggle to contain its sovereign-debt crisis sapped demand for riskier assets.
  • New Zealand's dollar declined 0.5 percent to 77.63 U.S. cents as of 12:31 p.m. Sydney time.

• USD/CAD Canada's dollar fell for the first time in three days against its U.S. counterpart on concern European nations may have difficulty repaying their debt, discouraging demand for higher-yielding assets.
  • Canada's currency depreciated 0.6 percent to C$1.0167 per U.S. dollar by 5 p.m. in Toronto. One Canadian dollar buys 98.36 U.S. cents.

Commodities

• Spot gold prices traded little changed on Tuesday, as investors unnerved by an Italian bond auction focused on the scope of the task faced by new governments in Italy and Greece in keeping the region's sovereign debt crisis under control.
  • Spot gold was little changed at $1,778.64 an ounce by 0016 GMT. * U.S. gold edged up 0.1 percent to $1,780.60.

• Oil fell for a second day in New York as concern that Europe will struggle to contain its debt crisis countered signs of declining fuel stockpiles in the U.S., the world's largest crude consumer.
  • Crude for December delivery declined as much as 43 cents to $97.71 a barrel in electronic trading on the New York Mercantile Exchange.

Equities

• European Stocks dropped as Italy's borrowing costs rose after the nation sold 3 billion euros ($4.1 billion) of bonds at the highest yield since 1997.
  • The benchmark Stoxx Europe 600 Index retreated 1 percent to 238.47 at the close in London, with all 19 industry groups declining.


• U.S Stocks declined, snapping a two-day advance in the Standard & Poor's 500 Index, as an increase in Italian borrowing costs deepened concern Europe will struggle to contain its sovereign debt crisis.
  • Morgan Stanley and Citigroup Inc. (C) fell more than 2.6 percent
  • The S&P 500 retreated 1 percent to 1,251.78 at 4 p.m. New York time.
  • The Dow Jones Industrial Average decreased 74.70 points, or 0.6 percent, to 12,078.98

• Asian stocks fell, paring yesterday's advance, after Italian borrowing costs surged, reviving concern Europe's sovereign-debt crisis is spreading, damping the outlook for earnings.
  • Japan's Nikkei 225 (NKY) Stock Average 225 Stock Average fell 0.7 percent.
  • Hong Kong's Hang Seng Index declined 1.2 percent.
  • Australia's S&P/ASX 200 dropped 0.4 percent

Sources: Bloomberg, FT