US open: Stocks start lower on Spain worries

Date: Monday 18 Jun 2012

The main US equity indices have begun the day with moderate losses, despite the relatively favourable resolution (for now) to the election drama in Greece.

The main reason for that seems to be the renewed pressure that sovereign bonds are coming under in the periphery, particularly in the case of Spain. Reports have appeared to the effect that the private sector audit of the Spanish financial system, which may be published towards the end of the week, may reveal a larger than expected capital short-fall. It must be pointed out however that this would be the result of using Ireland´s experience as the basis of some of the key parameters for retail mortgage losses, something which is far from clear should be the case.

That comes a day before the Spanish Treasury tries to sell €3bn in bills, followed by €2bn in long-term debt on Thursday.

AK Steel has released weaker than expected quarterly results this morning, while shares of Barnes&Noble are rocketing 10% higher ahead of its own results tomorrow.

Morgan Stanley has upgraded its view on shares of Groupon to overweight.

Front month West Texas crude futures are now off by 1.84% to the 82.48 dollar mark in NYMEX trading despite the contradictory reports coming out of the Moscow summit between Iran and the G-5 nations.

10 year US Treasuries are now rising by 4/32 dollars with yields at 1.57%.

AB

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE