ETX Capital Daily Market Bite: Markets Decline On Spanish Worries, 18th September 2012
September 18th, 2012, Daily Market Bite from Ishaq Siddiqi Market Strategist European financial markets are posting modest losses today as the risk-rally inspired by central bank stimulus measures comes to a halt while the precarious situation in Spain continues to rattle sentiment, prompting traders flock to safe haven assets such as German bunds. Despite a relatively well received T-bills auction by Spain, the country's ongoing resistance to ask for a full bailout (which would activate the ECB's bond buying programme) causes renewed worries about a spike in bond yields. Traders are worried that further delays by Spain could see yields creep back to dangerous levels -- indeed, today the Spanish 10-year is standing around 6% - the first time since the ECB's announcement of its bond buying plan. If bond yields keep rising, we could see Spain move closer to asking for a bailout -- today, the country's Deputy Prime Minister Soraya Saenz de Santamaria said Spain is still considering the conditions of a possible bailout. The Spanish national index is off around 1.8% while the euro drops against the dollar on the back of the weak price action across equities. In terms of data today, the German ZEW survey's current conditions index fell to 12.6 in September, compared with expectations for a reading of 17.9, but the economic expectations index rose for the first time in five months. The survey was slightly better than expected but failed to inject some positivity in markets <b>...</b>
If you want to add your voice and contribute to this existing news event, use the event code
(Event Code: @13091141), that you will find on each news event page, as the first word of the
SMS or MMS message followed by a space then add your contribution (text, image or video). For example:
@13091141 This is an amazing video of Greg Norman hitting a hole-in-one in Sydney, Australia.
The first word of the message should be @13091141 (event code), to make sure the system attaches
your voice to the right news event.