Michael P. Regan and Rita Nazareth
May 7, 2012
The euro slid for a sixth day versus the dollar after French Socialist Francois Hollande was elected president and Greek voters picked anti-bailout parties. Commodities fell while U.S. stocks swung between gains and losses and Treasuries erased earlier gains.
The euro lost 0.2 percent to $1.3056 as of 12:58 p.m. in New York. The S&P GSCI Index of commodities fell for a fourth day, declining 0.6 percent. Ten-year Treasury yields were little changed at 1.88 percent after losing six points earlier. The Standard & Poor’s 500 Index fluctuated near 1,370. Ten-year French yields slipped three points to 2.80 percent and the CAC-40 Index of stocks rallied 1.7 percent. The Stoxx Europe 600 Index reversed losses to climb 0.7 percent, even as Greece’s ASE Index (ASE) plunged 6.7 percent in its worst drop since November.
Speculation that European austerity measures will be curbed grew after Holland became the first Socialist in 17 years to be elected head of Europe’s second-biggest economy. His platform calls for policies German Chancellor Angela Merkel opposes, including increased spending and a delayed deficit-reduction effort. The Greek parliament will have three new anti-bailout parties represented.