Market
Buzz: Lull before the storm
Japan’s Nikkei Stock Average declined 0.6%, South Korea’s Kospi inched lower by 0.1%, the Hang Seng Index fell 1% and China's Shanghai Composite lost 0.8%.
Spanish borrowing costs rose to their highest level since the country adopted the euro, as the upbeat sentiment that followed the €100 billion EU bailout of its banks continued to wane.
Spanish Prime Minister Mariano Rajoy urged European leaders to take immediate action to counter the rising volatility hitting European markets, asking the European Central Bank to take measures to ensure financial stability.
Investors
are keeping their hands on the sell button with Spain under the
threat of more downgrades, and weekend elections in Greece that may
lead to the country leaving the eurozone
RT,
14
June, 2012
“Concerns
over the outcome of the Greek elections at the weekend will keep
investors from making any big moves,”says
Aleksei Malikov from investment group Trade Portal.
Asian
stocks are losing ground this morning following a retreat in Wall
Street overnight, with investors digesting weaker US retail sales
data and nervously anticipating the elections in Greece.
Japan’s Nikkei Stock Average declined 0.6%, South Korea’s Kospi inched lower by 0.1%, the Hang Seng Index fell 1% and China's Shanghai Composite lost 0.8%.
In
the US the Dow Jones Industrial Average fell 0.6%, the S&P 500
Index 0.7% and Nasdaq Composite lost 0.9%. The Commerce Department
reported retail sales fell 0.2% in May in line with the prior month’s
revised percentage drop, as limited job and income gains hold back
consumers.
Oil
traded near its lowest close in eight months in New York before OPEC
meets to discuss production quotas amid talks the group won’t cut
output as the global economy weakens.
European
markets were mixed on Wednesday, with investors nervously
anticipating the second round of elections in Greece this weekend.
Spain’s debt has also remained a hot topic.
Spanish borrowing costs rose to their highest level since the country adopted the euro, as the upbeat sentiment that followed the €100 billion EU bailout of its banks continued to wane.
Late
on Wednesday, Moody’s Investors Service downgraded Spain’s
sovereign-debt rating to Baa3 from A3, placing the country on review
for a possible further downgrade following last weekend’s
announcement that Spain will borrow up to €100 billion to support
its banking sector, coupled with the country’s limited
financial-market access and increasingly vulnerable economy.
Spanish Prime Minister Mariano Rajoy urged European leaders to take immediate action to counter the rising volatility hitting European markets, asking the European Central Bank to take measures to ensure financial stability.
Italy's
borrowing costs surged at the sale of its one-year treasury bills
with investors surrendering to concerns that the country may be the
next to seek a bailout.
Even
yields on safe-haven German bonds rose in Germany amid the
uncertainty.
The
drop in eurozone industrial production also weighed negatively on
investors.
Germany’s
DAX finished down 0.14%, in France the CAC 40 lost 0.55%, while the
UK’s FTSE 100 rose by 0.18%.
In
Russia the markets managed to finish in the black. Following volatile
trading amid Europe’s problems the RTS gained 1% and Micex was 0.6%
higher on Wednesday
In Australia
Nervous
investors dump shares
SMH,
June
14, 2012
Australian
shares fell to their lowest close in 10 days as investors scaled back
risk ahead of an Italian bond auction and critical Greek elections on
Sunday.
The
benchmark S&P/ASX200 index fell 21.6 points, or 0.5 per cent, to
4042.2, while the broader All Ordinaries fell 21.7 points, or 0.5 per
cent, to 4089.8.
No
sector posted gains today, with energy leading the losses, down 1.1
per cent. Materials fell 0.7 per cent and financials slipped 0.4 per
cent.
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