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MARKETS ARE CRATERING: SPAIN DOWN 3.7%, ITALY DOWN 2.1%, DOW FUTURES OFF 113
TBI ^ | 5-9-2012 | Simone Fox

Posted on 05/09/2012 6:26:12 AM PDT by blam

MARKETS ARE CRATERING: SPAIN DOWN 3.7%, ITALY DOWN 2.1%, DOW FUTURES OFF 113

Simone Foxman
May 9, 2012

Scroll to bottom for updates.

European shares are generally higher, but Spanish stocks are cratering, down 2.2 percent after yields on 10-year bonds rose past 6 percent for the first time since April 27.

The spread between Spanish 10-year bonds and German bunds of the same maturity is at its highest since November 28 (via @LemaSabachthani).

This follows a negative Asian session, where the Nikkei fell 1.5 percent and the Shanghai composite closed down almost 1.7 percent.

U.S. futures are lower, point to a slightly negative open. We'll see which way these move in the next few hours of trading across the pond.

UPDATE: In the few moments since the Spanish 10-year crossed 6 percent, European markets have turned around and are moving into the red. Spain is now down over 2.6 percent.

UPDATE II: Spain is now off over 3 percent! Yields on the 10 year are holding steady at 6.03 percent, and the spread between Spanish and German borrowing costs stands at 451 bps.

UPDATE (6:40 AM ET): This is turning into a major rout. Spain is now off 3.5 percent, Italy is down 1.9 percent, and Dow futures are now down 100 points.

The latest headline is that German MPs are beginning to believe that Greece should be able to exit the euro if it wants to. Otherwise, the negative momentum here just appears to be compounding.

UPDATE (9:10 AM ET): Spain just keeps getting worse! Now it's off 3.7 percent, and yields on German bunds just hit an all-time low at 1.50 percent. Italy is also down over 2 percent.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; eu; eucrisis; finance; investing; stockmarkets

1 posted on 05/09/2012 6:26:17 AM PDT by blam
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To: blam

Thinking of getting back in at S & P 1340.


2 posted on 05/09/2012 6:28:29 AM PDT by Crawdad
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To: blam
Developed Nations At The Precipice Of Oblivion , As End Of The Debt Supercycle Draws Near
3 posted on 05/09/2012 6:29:09 AM PDT by blam
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To: blam

4 posted on 05/09/2012 6:31:21 AM PDT by blam
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To: blam

” U.S. futures are lower, point to a slightly negative open. [...] Dow futures are now down 100 points. “

Well, the Plunge Protection Team barely managed to pull the Dow back from the brink yesterday - wonder if they have enough ‘magic’ left to repeat that feat today...


5 posted on 05/09/2012 6:35:13 AM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: blam

Down 111 as I post

6 posted on 05/09/2012 6:35:22 AM PDT by blam
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To: blam

Calling it “cratering” at this point seems more anticipation than observation. Might crater, but ~3% isn’t.


7 posted on 05/09/2012 6:37:39 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: blam

People are dumping gold.
Beck predicted this.

Time to buy more rice and beans.


8 posted on 05/09/2012 6:42:21 AM PDT by netmilsmom (Romney scares me. Obama is the freaking nightmare that is so bad you are afraid to go back to sleep)
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To: blam

They are selling it all: stocks, oil, gold, euros. Dollar and bonds zooming up. But we are still in a bull market, especially for tech.


9 posted on 05/09/2012 6:44:54 AM PDT by montag813
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To: Crawdad
"Thinking of getting back in at S & P 1340. "

Jim Rogers: I Don't See This As A Great Time To Buy Stocks At All

10 posted on 05/09/2012 6:46:28 AM PDT by blam
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To: netmilsmom

"TURN THOSE MACHINES BACK ON!"

11 posted on 05/09/2012 6:47:46 AM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: blam

Just thinking about it. May wait until 340.


12 posted on 05/09/2012 6:49:01 AM PDT by Crawdad
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To: Crawdad
"Just thinking about it. May wait until 340. "

LOL.

Kiss of Death for the S&P 500?

13 posted on 05/09/2012 6:50:55 AM PDT by blam
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To: Crawdad
AHHH! a buying opportunity.

"It's a flight to poverty!"

14 posted on 05/09/2012 6:53:13 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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To: Uncle Ike

Have thought there were some days since January 20, 2009 where, based on events, conditions and so forth the DJIA should have had a very serious drop similar to those we saw in the Fall of 2008. But, it’s never happened under Obama.


15 posted on 05/09/2012 6:55:11 AM PDT by John W (Viva Cristo Rey!)
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To: blam

Major Seasonal Cycle on May 5th points to 1-3 weeks of weakness in stocks. I do expect the market to attempt to rebound after a brief sell-off. It is the August 5th Major Seasonal Cycle that looks like the final high. I will expect stocks to top out with that cycle before cratering into 2013.


16 posted on 05/09/2012 6:57:36 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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To: blam
Hollande must have told Obama merde, non! to his request to hold off on doing any Socialism until mid-November.


17 posted on 05/09/2012 7:03:15 AM PDT by Buckeye McFrog
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To: blam

A 113 point futures fall on the Dow is less than 1%. Sorry, that doesn’t qualify for a headline of ‘cratering’. Hell hath no fury like a bear scorned; which is what they should be if they’ve been bearish for the last three years.


18 posted on 05/09/2012 7:14:06 AM PDT by LRoggy (Peter's Son's Business)
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To: blam

It’s hard to take anything that comes from TBI seriously when they use hyperbolic terms like ‘cratering’ to describe a mere down day. The Dow’s down 135 as I write...that;s hardly cratering.


19 posted on 05/09/2012 7:21:38 AM PDT by pgkdan (ANYBODY BUT OBAMA!)
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To: ctdonath2
Calling it “cratering” at this point seems more anticipation than observation. Might crater, but ~3% isn’t.

I see these guys at TBI and other financial prophets of doom more as cheerleaders for a collapse than cogent advisors against calamity. They want a collapse...they're hoping for chaos. That's how it appears to me.

20 posted on 05/09/2012 7:24:07 AM PDT by pgkdan (ANYBODY BUT OBAMA!)
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To: pgkdan

Maybe it will eventually be correct as it continues down.


21 posted on 05/09/2012 7:24:17 AM PDT by John W (Viva Cristo Rey!)
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To: Uncle Ike

They have the power! (PPT) and have been using it right along..... but at some point they will let the market crash even though they have the power to stop it.....Its a completely rigged game now


22 posted on 05/09/2012 8:19:34 AM PDT by M-cubed
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To: montag813
What will they get in return? Paper dollars - not even particularly good for toilet paper. This is a trap and a perfect example of manipulating people into Fed debt.

Keep your bullion, blue chips and carefully selected gold stocks. Buy steel and lead, if you catch my drift.

23 posted on 05/09/2012 8:23:27 AM PDT by Dr. Thorne (Don't vote for anyone who worked for Goldman Sachs)
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To: John W

Buy low, sell high. This is the ‘low’. Great time to buy Sturm, Ruger - RGR. Firearm sales are going gangbusters.


24 posted on 05/09/2012 8:29:17 AM PDT by aimhigh
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To: blam

Don’t fret, we will be positive by days end. Purge protection team to the rescue.


25 posted on 05/09/2012 8:49:01 AM PDT by woodenickel
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To: blam
I'm delighted!!!

Oil dipped as low as $95/barrel for a moment this AM!!!

I'm planning to drive to AK in my RV this summer and I want that gas price DOWN!!! WAY DOWN!!!

26 posted on 05/09/2012 8:50:51 AM PDT by SierraWasp ("GovernMental austerity first, THEN conservative prosperity!!! Austerity breeds properity!!!)
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To: SierraWasp

The Eurotrash may fool themselves, but they can’t fool the markets. If the socialists kill the austerity measures we’ll see a meltdown in Europe as bad as the 1930s. I’d love to see Greece go into full default and people having to take a wheelbarrow full of cash to buy a loaf of bread. It’s the only thing that will force these clowns to face reality.


27 posted on 05/09/2012 10:54:13 AM PDT by littleharbour
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To: littleharbour

I only wish some of our own Ameritrash in government high office weren’t so delusional about the need for austerity and it’s devasting effect on prosperity!!!


28 posted on 05/09/2012 11:13:57 PM PDT by SierraWasp ("GovernMental austerity first, THEN conservative prosperity!!! Austerity breeds properity!!!)
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