Global Markets Go Back to Fretting Over the Stalemate on the Fiscal Cliff

“Stocks fell around the world, Treasuries gained and the yen strengthened against all its major peers after House Republican leaders scrapped a plan to allow higher taxes as budget talks stalled. Commodities declined.

The MSCI All-Country World Index dropped 0.4 percent at 11:43 a.m. in London. Standard Poor’s 500 Index futures slumped 1.3 percent, after plunging as much as 3.4 percent. The Stoxx Europe 600 Index slid 0.6 percent, falling from a 19-month high. The yield on 10-year Treasuries decreased three basis points to 1.77 percent. The yen climbed 0.3 percent, while the euro weakened 0.3 percent. The S&P GSCI gauge of 24 commodities lost 0.4 percent and oil in New York falling 1.1 percent….”

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