16 Apr 2012: Equities mixed, Spain’s borrowing costs rise beyond 6%

  • Equities mixed on European concerns, Commodities struggling: Largely, traders are concerned about the fiscal conditions in Europe as Spain’s borrowing costs surpass 6%; however, there is some limited bullish activity arising from the multi-week lows in various equities and indices.
  • Stocks: FTSE All World is down 0.1%, but FTSE Eurofirst is down 0.7%; In Asia, FTSE Asia Pacific has lost 0.8%, while Tokyo lost 1.7%; S&P 500 is expected to rise 0.3% at open; FTSE 100 is adding 0.63% at open and is at 5687
  • Currencies: Euro has lost 0.2% against Dollar and is at $1.3036; Dollar has gained 0.16% against Yen and is at 80.76. Sterling is unchanged against dollar and is at 1.5851
  • Debt: US 10-years drop to1.99%; Bunds also drop to 1.73%; Gilts are at 2.02%
  • Commodities: Brent Crude lost 0.99% cents to $120.01/barrel; Copper falls 0.5% and is at $3.61/pound; Gold falls 0.5% to $1649/ounce
  • Spanish borrowing costs rise above 6%: Spain’s 10-year bond yields have risen to 6.14% after closing at 5.65% last week. Analysts say that the problem with Spain now is liquidity and not solvency. Borrowing costs over 6% are considered to be unsustainable.

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