Speculation on increased integration boosts euro

The euro rallied and bonds retreated from last week’s record low yields yesterday, as speculation increased that authorities will seek greater fiscal integration in the eurozone.

US stocks fell, but oil, copper and other commodities rebounded as investors speculated new action may be in the works to address the debt crisis and keep Greece from leaving the euro zone.

A rally in Europe’s troubled banking sector lifted battered Spanish, French and Italian stocks, with the eurozone’s blue-chip Euro STOXX 50 index closing up 0.5%. An index of the eurozone banking sector rose 3.4%.