The euro fell after Moody's Investors Service downgraded some Irish lenders

The euro fell after Moody's Investors Service downgraded some Irish lenders and debt. Boeing Co. led losses in the Dow Jones Industrial Average amid concerns that delayed its new 787 Dreamliner.

The euro fell against 14 of the 16 major pairs at 11:36 am in New York, falling to 1.2 percent to a record low against the franc. 500 of Standard & Poor's changed little after rising 0.3 percent in the first 15 minutes of trading. Boeing fell to 3.4 percent after the Seattle Times reported that it will release a new delay to the 787.

The euro extended losses as Moody's downgraded the state-controlled Anglo Irish Bank Corp. and Irish Nationwide Building Society, with grades of scrap and reducing Ireland in a variety of bonds, or securities backed by cash flows of the other debts. Intel Corp. also dragged the benchmark U.S. stock after a Wall Street Journal report that faces European antitrust scrutiny in the purchase of McAfee Inc.

"The market is vulnerable," said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees 52.5 billion U.S. dollars. "There's still nervousness about the prospect of further cuts in Europe. In the U.S., things are improving, both from the standpoint of business and economics. However, the global nervousness will be around for a while and increases the vulnerability of markets to any news. "

The S & P 500 fell to its lowest level since September 2008 as an industrial and technology companies led declines among the 10 major industry groups. The index has risen more than 11 percent in 2010 amid improving corporate profits and the Federal Reserve's efforts to inject more money into the economy.

European shares

The Stoxx Europe 600 index rose 0.7 percent, trimming an earlier gain of 1.1 percent. Volkswagen AG, the largest automaker in Europe, rebounded 3.4 percent after saying it expects sales in China to grow 10 to 15 percent next year. Abertis Infraestructuras SA rose 1.7 percent after a Sunday Times report that CVC Capital Partners Ltd. may bid for the Spanish motorway operator.

Banco Popolare SC rose 5.5 percent, the first increase in eight days, after Goldman Sachs Group Inc. raised its recommendation on the bank to "neutral" from "sell."

airline stocks retreated as snow in European air travel disrupted for a third day. British Airways Plc sank 1.6 percent, while Deutsche Lufthansa AG lost 0.6 percent.

Euro weakens

The euro fell 0.8 percent against the yen, which weakened to its lowest level in nearly two weeks, and dropped 0.5 percent against the dollar at $ 1.3125. The New Zealand dollar strengthened against all 16 of its most actively traded counterparts, advancing by 0.8 percent compared with the U.S. currency.

The yield on the benchmark 10-year French fell seven basis points to 3.32 percent.

Similar to the U.S. due U.S. Treasury yield fell eight basis points to 3.26 percent before the Fed to buy up to $ 17 billion of securities maturing between 2014 and 2020 as part of its program-called quantitative easing.

The MSCI Emerging Markets Index fell 0.3 percent. Shanghai, China Composite Index sank 1.4 percent, the biggest drop in nearly three weeks, on speculation that the government will increase interest rates to curb inflation.

Investors are too optimistic given the prospects of tighter monetary policy, Hong Hao, an equity strategist at Beijing-based China International Capital Corp., wrote in a report released today.

The Hungarian forint weakened 1.4 percent against the euro, extending losses after the central bank raised its benchmark rate to 5.75 percent from 5.5 percent due to inflation concerns will accelerate.

South Korea's Kospi index lost 0.3 percent, comparing a previous version 1.5 percent drop, after the country conducted a live fire drill without calling the vengeance of its northern neighbor.