Stocks in U.S. Decline on Factory Data as Treasury Yields Climb From Lows

http://www.bloomberg.com/news/2012-06-04/europe-stocks-pare-drop-s-p-500-futures-rise-italy-bonds-gain.html

The Standard & Poor’s 500 Index (SPX) extended its drop from a four-year high in April to 10 percent as an unexpected decrease in factory orders added to signs the economy is slowing. Japanese and Chinese equity gauges slid into bear markets while Treasury yields rose from record lows.

The S&P 500 lost 0.4 percent at 11:49 a.m. in New York, while the yield on the U.S. 10-year Treasury note increased five basis points to 1.51 percent. The Stoxx Europe 600 Index (SXXP) slipped 0.5 percent. Japan’s Topix Index fell 1.9 percent to the lowest since 1983 and the Hang Seng China Enterprises Index slid 2.6 percent. The S&P GSCI gauge of commodities erased early losses to trade little changed. Italy’s 10-year bond yield fell 21 basis points to 5.65 percent and Spanish bonds rose a third day.

U.S. factory bookings unexpectedly slid 0.6 percent in April to mark the first back-to-back declines in more than three years, Commerce Department data showed today. Pressure built on German Chancellor Angela Merkel to back new ideas to resolve the debt crisis as Spain urged European leaders to bolster efforts to protect banks. China’s non-manufacturing industries expanded at a slower pace for a second month.