European stocks closed in red zone

European stocks fell after Spain’s bond yields surged, Germany’s unemployment rate rose more than forecast and two-day summit of the region’s leaders started in Brussels.

German unemployment climbed in June for the fourth month this year and reached 6.8%.

Shares of Barclays Plc fell 15% after fines for falsifying London interbank-offered rate submissions sparked speculation lawsuits will follow.

Shares of Commerzbank AG sank 6.4% as the lender issued new shares.

Shares of Debenhams Plc lost 1.1% after the retailer reduced its forecast for profitability.

U.S. stocks fell after jobless-claims data fueled concern over the economy and skepticism grew that European leaders will make progress on the debt crisis.

In the U.S., the number of applications for unemployment benefits hovered last week near the highest of the year, showing little improvement in the labor market.

Groups in the S&P 500 showed today mixed dynamics as technology and financial shares had the biggest losses.

Shares of JPMorgan Chase & Co. (JPM) fell 2.45% after the New York Times said trading losses from credit derivatives may total as much as $9 billion, exceeding the firm’s initial estimate.