Currencies

• EUR/USD The euro weakened for a second day against the dollar and the yen on speculation the region's sovereign-debt crisis will keep spreading.
  • The single currency dropped to $1.4335 as of 11:28 a.m. in Tokyo from $1.4369 yesterday in New York.


• USD/JPY The yen gained against all of its 16 major counterparts as concern that the U.S. and Europe will struggle to contain their debt spurred demand for Japan's currency as a refuge.
  • The yen gained to 77.80 per dollar from 77.98. Yesterday it advanced to 77.57 against the greenback, the strongest since it hit a postwar record on March 17.

• GBP/USD The pound declined from a two-month high against the dollar as an index of U.K. factory orders fell more than estimated and manufacturers' optimism plunged to the lowest in two years.
  • The pound fell 0.2 percent to $1.6369 at 3:31 p.m. in London, after reaching $1.6439, the most since June 14.

Commodities

• Gold traded within 1 percent of a record as U.S. policy makers pushed competing proposals to increase the nation's debt ceiling before an Aug. 2 deadline.
  • Spot bullion, which reached an all-time high of $1,628.05 an ounce yesterday amid the political wrangling, traded 0.2 percent higher at $1,616.55 at 11:30 a.m. in Singapore. Futures in New York were little changed at $1,618.70 an ounce after reaching a record $1,631.20 yesterday.

• Oil declined for a second day in New York as investors bet that rising crude supplies and signs of a slowing economy in the U.S. indicate fuel demand may falter in the world's biggest consumer of the commodity.
  • Futures slid as much as 0.9 percent today after falling to the lowest in more than a week yesterday. U.S. crude stockpiles climbed 2.3 million barrels to 354 million last week

Equities

• U.S. stocks fell, dragging the Standard & Poor's 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit.
  • The Dow Jones Industrial Average retreated 198.75 points, or 1.6 percent, to 12,302.55.


• European stocks fell for a third day
  • The Stoxx Europe 600 Index slid 1.1 percent to 267.05 at the 4:30 p.m. close in London.

• Asian bank fell for a third day this week as U.S. lawmakers failed to break a deadlock over raising the federal debt limit, and durable goods orders in the world's biggest economy unexpectedly declined.
  • Japan's Nikkei 225 (NKY) Stock Average fell 1.7 percent, sliding below the 10,000 yen level for the first time in a week and headed for its biggest drop in a month.
  • Hong Kong's Hang Seng Index (HSI) dropped 1 percent.

Sources: Bloomberg, FT