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 ...
Maybe it will eventually be correct as it continues down.
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
Keep your bullion, blue chips and carefully selected gold stocks. Buy steel and lead, if you catch my drift.
Buy low, sell high. This is the ‘low’. Great time to buy Sturm, Ruger - RGR. Firearm sales are going gangbusters.
Don’t fret, we will be positive by days end. Purge protection team to the rescue.
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!!!
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.
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!!!
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