European sovereign default risk rises

Brussels: European sovereign default risk rose to a record after a report showed employment in the United States stagnated unexpectedly in August, adding to signs the global economic recovery is weakening.

The Markit iTraxx SovX Western Europe Index of credit- default swaps insuring the debt of 15 governments rose 12 basis points to 311 at 3pm in London, surpassing an all-time high closing price of 308 on August 26.

Swaps tied to Italian debt jumped 13 basis points to 398, topping last month’s 391 closing price., according to CMA.