European stocks dropped for a second day, to the lowest level in almost four months, as investors awaited a resolution to the political impasse in Greece and as Spanish credit risk surged.
A “bubble” in fixed-income markets is set to burst and will drive funds into stocks, according to Axa Framlington, which oversees $30 billion in global assets.
Stocks rose to a four-week high, metals rallied and corporate creditworthiness improved on the prospects for economic growth. European bonds rebounded from three days of losses.
"This is an important and necessary opportunity for regulators to send the appropriate message to all concerned, and thus these instances should be investigated quickly and thoroughly."
- Mark Tinker on Jul 20, 2011