Talks among euro-zone finance ministers on how to bail out the Spanish banking system and create a common regulator for the region’s banks failed to impress investors. Yields on Spain’s benchmark 10-year bond rose to about 7%, a level than economists say is unsustainable. European markets were mostly lower, with the Stoxx Europe 600 slipping -0.4%. Adding to concerns, data over the weekend showed that inflation eased in China last month as demand cooled.
Before their earnigns report at the close, shares of Alcoa eased. The blue-chip aluminum company is to report second-quarter results after the closing bell, marking the unofficial kick-off of the reporting season. Many investors are worried that these next few days of earnings will be a major indicator of a global slowdown and the beginning of another crisis.
In other corporate news, Amerigroup surged after the health insurer said it agreed to be acquired by WellPoint for $4.46 billion in cash. WellPoint shares gained, posting the second-biggest increases in the S&P 500. The index’s health-care sector was one of just two of its 10 groups to rise as Amerigroup rivals such as Centene and Molina Healthcare also advanced. In other deal news, FX Alliance leapt after the electronic currency-trading platform entered into a deal to be bought by Thomson Reuters for $616 million. Finally, Facebook (FB) rose after agreeing to settle patent litigation with Yahoo, drawing an end to a nasty but ultimately short-lived dispute that had roiled Silicon Valley.