European markets plunged into fresh turmoil yesterday after the first call for bailout aid by a Spanish region sent borrowing costs soaring, while Italy and Spain reinstated a ban on short selling. Sovereign bond yields of the U.S., Germany, and the U.K. hit new lows in response, while the euro traded below its lifetime average against the dollar.
Sentiment this morning is mixed between rising PMI figures in China versus disappointing European manufacturing PMIs and after Moody’s put Germany’s Aaa rating on outlook negative. S&P 500 futures are down -0.233%, the Euro Stoxx 50 is down -0.61%, and Asian equity indices closed lower on the day. U.S. Treasury yields are up +3bps to 1.455% after yesterday reaching an all-time low of 1.4%. Most yields are higher in Europe, and spreads to Bunds are all higher except for Sweden, the U.K., and Switzerland. Spanish 10yrs are trading at new all time highs of 7.4714%. Commodities are slumping, with Wheat and Corn down -2.9% and -1.72% respectively. The euro is down -0.116% to $1.2103 this morning, and most risky FX pairs have declined while the Yen and USD advance.
Read more →
Sentiment is sharply negative this morning after Spanish regulators banned short selling, Chinese policymakers warned of a slowdown in growth, and as speculation over Greece leaving the 17-nation euro-zone increases to a high. The U.S. 10yr Treasury is hovering near 1.41% after hitting an all-time low of 1.40% in overnight trading. Two-year German yields fell to as low as minus -0.08%, while Italian and Spanish yields jumped; sovereign debt-spreads to German Bunds all widened on the day. S&P 500 futures are down -1.396%, the Euro Stoxx 50 is down -2.84%, and Asian equity indices all closed sharply lower on the day. Greece retakes center-stage this week as its international creditors, including the European Commission, the ECB, and the IMF, arrive in Athens today to assess how far off course the country is from its bailout targets, again increasing murmurs of a return to the drachma. Commodities are strongly lower on the day, led down by Brent Crude down -3.9%.
Read more →
Sentiment is negative this morning with U.S. equities down for the first time in four days, a weakening euro, and lower commodities as China’s leaders pledged to clamp down on property speculation and concern grew that policy makers aren’t doing enough to tame Spain’s debt crisis. The S&P 500 is down -0.51%, the Euro Stoxx 50 down -2.33% led by Spain’s IBEX and Italy’s FTSE MIB both down in excess of -4.15%. The USD is stronger against most of its peers, with the USD Index up +0.668% on the day.
Read more →