17 May 2012: Greece fears infect markets again

  • Wary investors prompt bearish trends again: Markets remain worried about Greece’s political situation which might see it exit the euro which has seen growth-focussed assets remain at lows.
  • Stocks: FTSE All World fell almost 1% to a 4-month trough as FTSE Eurofirst lost 0.5%; In Asia, FTSE Asia Pacific lost a hefty 2.6% while Tokyo lost a 1.1%; S&P 500 closed 0.4% lower; FTSE 100 has lost 0.6% and is at 5405
  • Currencies: Euro dropped to a low against Dollar at $1.27
  • Debt: German Bunds moved off their low to 1.49%; US 10-years are at 1.76%
  • Commodities: Brent Crude has lost 0.4% to $109.17/barrel; Copper stays at $3.48/pound; Gold loses 0.1% at $1536/ounce
  • Japanese growth in strong bounce: Japanese economy performed well in Q1, but the pace of growth might slow down as soon as temporary boosts fade. Japan grew 1% in Q1, but this might not continue into 2012. The short term cyclical lift has come from the government’s incentives to buy fuel-efficient cars, and earthquake-related reconstruction.
  • Spain bids to pin down real estate losses: Spain’s govt will appoint BlackRock and Oliver Wyman as independent valuers of the real estate loans in Spain.

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