Stocks, euro slide as worries about Europe continue

SNEW YORK (AP) — Stocks and the euro sank today as worries about Europe hang over financial markets.

Energy companies fell hard as the price of crude oil plunged 4 percent. The dollar and Treasury prices rose as traders shifted money into lower-risk assets.

Italy's borrowing rates ratcheted higher and the euro slid below $1.30 for the first time since January, two signs that the debt crisis continues to pressure Europe's governments. The euro has now lost more than 3 percent in three days.

Italy had to pay higher borrowing rates in its last bond auction of the year today. The euro zone's third-largest economy paid 6.47 percent interest to borrow euro3 billion ($3.95 billion) for five years, up from 6.30 percent just a month ago. The higher rates make it more expensive for Italy to borrow money and reflect doubts that the country will be able to repay its debts.

The Dow Jones industrial average fell 111 points, or 0.9 percent, to 11,843 as of 2 p.m. Eastern time. Caterpillar Inc. fell 3.7 percent, the most of the 30 stocks in the Dow. The Dow is headed for its third consecutive day of losses after closing at its lowest level in two weeks Tuesday.