Date: Thursday 14 Jun 2012
-Italian yields drop after auctions
-Credit Suisse down 10%
-OPEC keeps output unchanged
-Credit Agricole could walk away from Greek subsidiary -WSJ
-IIF calls for coordinated global policy easing
-IIF says Greece program can be eased
Stoxx 600: -0.30%
FTSE Mibtel: 1.47%
Ibex 35: 1.22%
The main European equity benchmarks finished the day with small losses. Rating agency Moody´s decision last night to axe Spain´s credit rating by three notches seems to have heightened the nervousness in the markets, sending yields on the country’s 10 year bonds sharply higher, towards 7%, although they closed the day a tad below that level.
Compensating for the above, there is growing talk about the need for more policy action so as to buttress world growth.
Yet perhaps the worst news is that Fitch may soon cut Spain’s rating again depending on the actions which are undertaken by the country in the next few months. “Simply put, further Spain downgrades could easily bring matters to a head in the Eurozone, forcing authorities to act or capitulate,” comment analysts at Digital Look.
Further contributing to that poor sentiment were the poor economic indicators released in the Iberian country this morning.
Acting as a backdrop, speaking in Berlin Chancellor Angela Merkel is spoke of what her objectives are for this next weekend´s summit of G20 countries. Of interest, she seems to be trying to ‘turn the tables’ on some of her critics in the developing world who, for quite a few observers, tend towards protectionist policies by more-or-less overt means.
Quite striking was the sharp criticism of Germany out from the likes of Spain’s Prime Minister Mariano Rajoy, who argued that Germany must not forget that its export prowess also benefits from an otherwise weaker single currency.
This morning’s auction of Italian debt seems to have been a relative success, with the country managing to find a home for its target issuance of €4.5bn in medium and long-term debt. In fact, yields on Italian bonds finished modestly lower.
From a sector stand-point the worst performance is to be seen in the following industrial groups within the DJ Stoxx 600: technology (-2.01%), automobiles (-1.8%) and personal and household goods (-1.15%).
Nokia is plummeting by 18% after warning on its outlook for the second quarter, and Credit Suisse fell 18% after Swiss regulators told the lender it must increase its capital position.
BMW and Daimler are taking a knock following negative research out on both manufacturers today from Morgan Stanley.
or share it with one of these popular networks:
You are here: news