7 May 2012: Election results see equities and euro tumble

  • Stocks and Euro fall, Bond Yields rise: Following the election of France’s new president, and the collapse of support of pro-Europe parties in Greece, equities and the Euro have fallen. The rising spread in debt yields between the peripheral and core European nations will influence Euro’s value in the coming weeks. The election results in Greece and France have reflected public’s failing support for the eurozone and austerity measures. Euro has finally broken the support level of $1.30.
  • Stocks: In Greece, General equity index slipped 6.5% owing to rapid selling; Germany’s Xetra Dax was down 1.2%, and France’s CAC 40 fell 0.8%; Asian equities also suffered with FTSE All World losing 2.3% and Tokyo’s Nikkei down 2.8%; S&P 500 is trading 1.61% lower ; FTSE 100 has fallen 1.93% today and is at 5655
  • Currencies: Euro has fallen over a percent against Dollar and is at $1.3016
  • Debt: US 10-years and Bunds are the ‘safe debt choices’ and yields have dropped to 1.84% and 1.57% respectively; Greece’s yields have shot up 195bp to 21.83%, while Italy’s and Spain’s added too- they are now at 5.45% and 5.74%
  • Commodities: Brent Crude has fallen of late and stands at $113.11/barrel; Copper slips to $3.72/pound while Gold is flat at $1644

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