LONDON (Reuters) – World stocks fell from this week’s one-month high on Thursday and the euro and oil prices dropped as worries about Spain’s public finances encouraged investors to cut back on risky assets.
The spread of Spanish government bond yields over benchmark Bunds soared to a euro lifetime high with the market watching the auction of up to 3.5 billion euros of 10- and 30-year bonds later in the day to gauge investor appetite.
“A failure to cover these auctions could see some of the risk appetite that has returned this week dissipate very quickly,” said Michael Hewson, currency analyst at CMC Markets.
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