Spain is still having its problems and this are weighing in on the market place. I found a couple news articles about the issues.
Here’s a video recap of what’s going on with that.
I also found a good news article on it. Here’s an article from Nasdaq.com
=====
The euro recovered some poise in European trading Monday but remained vulnerable after hitting multi-month lows against the dollar and sterling as Spanish fiscal worries
pounded bond and equity markets.
Yields on 10-year Spanish government bonds rose above 6% for the first time since December and Spanish equities briefly hit a new three-year low, while the cost of insuring against a Spanish default rose to a record high.
The euro at one point flopped to its weakest level since February against the dollar, falling to as low as $1.2994 in early trade from $1.3077 late Friday in New York, before steadying above $1.30. The euro also sank to a 19-month low against the pound of GBP0.8210, compared with GBP0.8248 late Friday.
“Signs are building that the euro is heading lower from here and although positioning could limit the size of the move it won’t cancel it out,” said Ankita Dudani, a currency strategist at Royal Bank of Scotland in London. By “positioning” Dudani was referring to data which showed another rise in speculative bets on a declining euro at the Chicago Mercantile Exchange, which could yet support the single currency if they are subsequently reversed.
Adding to evidence of growing investor stress, yields on safe-haven 10-year German bunds printed another record low at 1.632%, just as corresponding Spanish yields topped out at 6.12%.
“The [euro zone’s] bailout resources are simply not big enough to cope with a Spain. This is taking a toll on the euro which is threatening a break below $1.30,” said Tom Levinson, a currency strategist at ING in a note to clients.
The area around $1.30 is littered with key technical levels and stop losses, according to traders and strategists. Commerzbank said a sustained break below $1.30 could open up the way to $1.2920 and $1.2860, while another trader cited a cluster of option barriers at $1.2975.
Meanwhile, an internal survey of foreign-exchange sales teams conducted by Credit Suisse showed currency investor sentiment sliding back to levels seen before the European Central Bank’s long-term refinancing operations.
“Over 70% of our respondents believe clients are bearish on risk, more than double the 34% we recorded in our last survey,” Credit Suisse said.
Source: Nasdaq.com
========
So what are your thoughts on this? Make sure to leave your comments below. I want to hear your predictions.
Our Rating: [yasr_overall_rating]