Europe Stocks Fall With Krone, Oil Extends Drop Below $60

Commodity producers led European stocks to their worst week since 2012 as U.S. benchmark oil extended declines below $60 a barrel. Norway’s krone weakened and Russia’s ruble slid to a record, while a surge in government bonds sent yields in Europe to all-time lows. The Stoxx Europe 600 Index dropped 1.5 percent at 10:45 a.m. in London. Standard & Poor’s 500 Index futures slipped 0.6 percent, with the gauge set to end seven weeks of gains. West Texas Intermediate crude lost 1.5 percent to $59.05 a barrel. The krone slid to an 11-year low against the dollar, while the cost of insuring Russian government debt rose for a 15th day, the longest streak on record. The yield on 30-year German bunds slid as much as six basis points to a record 1.465 percent and France’s reached 1.931 percent. Oil is headed for the 10th weekly drop since the start of October after OPEC decided against reducing its output, even as the highest U.S. production in more than three decades exacerbates a global glut. Global oil demand next year will be weaker than previously estimated and supply from non-OPEC producers will be bigger, the International Energy Agency said in a report today. While the lower fuel prices hurts producers, that’s boosting demand for bonds as central banks maintain stimulus to fight deflation. By Nick Gentle and Stephen Kirkland

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