22 Mar 2012: Equities slip again, Spain’s borrowing costs rise

  • Equities slip again, Copper crashes: Reaction to China’s growth concerns continues; risk appetite started to build up on Wednesday, but couldn’t sustain. Commodities have also rebounded off, and Saudi’s assurance about Crude Oil, has seen its price fall. Lower equities demand has also seen US 10-year yields fall 4 bp, while Bunds are well below 2%; Spanish yields however, surpass 5.5% again.
  • Stocks: FTSE All World is down 0.3%, FTSE Eurofirst loses a massive 1.2%; S&P 500 looks set to lose 0.6% at opening bell; FTSE 100 loses 0.7% at open and is at 5891
  • Currencies: Euro loses 0.4% and is at $1.3159; Yen is 83.1 against the dollar. Sterling against dollar is at 1.5802
  • Debt: US 10-years at 2.26%; Bunds at 1.92%; Italian bonds cross 5%; Gilts are at 2.33%
  • Commodities: Brent Crude lost 0.7% at open at $124.08/barrel; Copper crashes as it has lost 1.9%; Gold loses $15 to $1635/ounce
  • Other news, briefly
  • Spain’s borrowing costs surpass 5.5% again: Low confidence arising from a massive deficit in Madrid pushes Spanish yields again. Contagion spreads to Italy as well, as their yields also crossed 5%. Despite action from Eurozone governments, depressed economic activity in these countries points towards a sharp short-term contraction.
  • Deutsche ditches American holding: Deutsche Bank has ditched its American holdings in a bid to avoid new Dodd-Frank US regulations that would have forced it to pump billions of dollars in terms of additional capital in the US.
  • Unemployment in the US at its lowest in 4 years

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