Posts Tagged ‘Spain’

After a steady rally pushed the stock market up more than 2% yesterday, investors are nervous about extending those gains today. Concerns from Europe are back on the table as Spain may apparently need to tap into a credit facility to avoid turmoil. The Financial Times called the country “the next potential crisis in the eurozone bond markets.” “This week the Spanish government and BBVA, Spain’s second biggest bank, admitted what investors have known for weeks: the country’s banks are on the brink of a funding crisis because their access to international markets is virtually closed,” the UK newspaper reported. Economists at BMO noted that “Spanish 10-year yields are at a near two-year high, while the spread vs. German bunds is flirting with a record...(read more)

The stock market is indicated lower this morning as investors remain weary about Europe’s debt crisis. Overnight, Japanese GDP rose at a slower-than-expected annualized rate of 4.9% in the first quarter, a Chinese finance minister called for the U.S. to bring its budget deficit under control , Spain issued 10-year bonds at 4.05% — the highest yield of any 10-year auction since April 2009 , Greek workers are protesting austerity again , and rumors are circulating that all EU members will adopt Germany's ban on short selling . Ninety minutes before the opening bell, Dow futures are off 113 points to 10,292 and S&P 500 futures are down 15 points at 1,095.00. The 2 year Treasury note yield is 4.1 basis points lower at 0.736% and the benchmark 10 year Treasury note yield is 8...(read more)

The global stock market is relatively benign this morning, and domestic stocks look to open firmer, after Euro zone Q1 GDP rose 0.2% in the quarter, slightly faster than expected and following the prior quarter's flat reading. Annual GDP was up 0.5%, in line with forecasts, and following a 2.2% pullback in Q4. “Debt concerns were allayed somewhat by news of better-than-expected Q1 GDP growth in the Euro area and by Spain’s announcement to slash public sector spending and wages,” said economists from BMO in a morning note. “Even the wobbly Chinese stock market had a rare up day.” An hour before the opening bell, Dow futures are up 44 points to 10,753 and S&P 500 futures are up 5.10 points to 1,157.30. Light crude oil is up 0.20% to $76.52, and Spot Gold...(read more)

After an insane day in the stock market yesterday, which saw the Dow fall by nearly 1,000 points, or 9.2%, before rebounding and closing with a loss of 3.20% ― all because of a trader’s typing error, perhaps? ― stock futures are on their way to stabilizing. “It is not clear exactly what sparked the 10 minutes of utter chaos in the markets yesterday afternoon, but the underlining story is undoubtedly fear that the Greek nightmare will spread to the much bigger economies of Spain and Italy, driving the Euro Zone into a deep new recession and wreaking havoc in the banking system,” said Ian Shepherdson of High Frequency Economics.” “Financial contagion, round two, is the fear, but the twist in the tale is that the debt risk is sovereign rather than private, and it...(read more)

Equity futures are firmly lower this morning following a mixed session yesterday. The Dow looks to open 31 points lower at 10,507 while futures on the S&P 500 are off 4.25 points to 1,132.75. “The mood in global markets is towards risk aversion with no apparent trigger,” said Benjamin Reitzes from BMO. MND's Adam Quinones says weakness in stocks and the flight to quality into Treasuries is a factor of overnight news from Fitch Ratings that warned against a downgrade of the credit ratings of the United Kingdom, France, and Spain. Confirming that risk isn’t on the table this morning, WTI crude oil is down $1.25 to $80.62 per barrel, and Spot Gold is trading $6.32 lower at $1,117.23. As one would expect, the US dollar is stronger against a broad array of currencies. The...(read more)