European Bond Yields hit Record Lows, Argentina Teeters on the Brink of Another Default
July 30, 2014 8:01 am
European Markets were trading broadly flat this morning, despite both the US and the EU imposing further economic sanctions on Russia. Financial institutions and Energy companies will bear the brunt of the sanctions, though weapons sales and purchases have also been curtailed. There were gloomy tidings from bond markets, with 10-year yields hitting new record lows; 10-year German government bonds yields were at 1.12%, French 10-year yields were at 1.52% and at 1.32% Dutch 10-year yields were at their lowest since records began almost 500 years ago. Nonetheless, the markets seemed relatively unscathed by all the sobering news, with the FTSE currently up 0.05%, the DAX up slightly at 0.03% and the CAC 40 down by around 0.1%.
US stocks closed lower on Tuesday, with Russia sanctions weighing on market sentiment – the S&P 500 ended up 0.5% lower at 1,969.9, after reaching touching distance of its record closing high of 1,987.98, being 4 points away at its highest. The US Treasury Department has announced penalties for American citizens dealing with equity or bonds of VTB Bank OAO, Bank of Moscow and Russian Agricultural Bank. Sanctions have also been placed on United Shipbuilding, which has contracts with the Russian military.
Argentina is currently on the brink of defaulting on debt for the second time since the turn of the century. Final negotiations are being held in New York today, as the Argentine government attempt to come to a deal with certain hedge funds suing for repayment of bonds purchased in the aftermath of the country’s last default around 12 years ago. Bloomberg is reporting that a default by the G20 member could precipitate bondholder attempts to claw back up to up to $29 billion, around the same amount as the nation’s foreign currency reserves.
Twitter shares have risen sharply after the company reported sales of $312.2 million, far outpacing expectations of $282.8 million. Shares in the social network company rose by 30% after the report, after having fallen by 43.8% over the course of 2014.
European Markets were trading broadly flat this morning, despite both the US and the EU imposing further economic sanctions on Russia. Financial institutions and Energy companies will bear the brunt of the sanctions, though weapons sales and purchases have also been curtailed. There were gloomy tidings from bond markets, with 10-year yields hitting new record lows; 10-year German government bonds yields were at 1.12%, French 10-year yields were at 1.52% and at 1.32% Dutch 10-year yields were at their lowest since records began almost 500 years ago. Nonetheless, the markets seemed relatively unscathed by all the sobering news, with the FTSE currently up 0.05%, the DAX up slightly at 0.03% and the CAC 40 down by around 0.1%.
US stocks closed lower on Tuesday, with Russia sanctions weighing on market sentiment – the S&P 500 ended up 0.5% lower at 1,969.9, after reaching touching distance of its record closing high of 1,987.98, being 4 points away at its highest. The US Treasury Department has announced penalties for American citizens dealing with equity or bonds of VTB Bank OAO, Bank of Moscow and Russian Agricultural Bank. Sanctions have also been placed on United Shipbuilding, which has contracts with the Russian military.
Argentina is currently on the brink of defaulting on debt for the second time since the turn of the century. Final negotiations are being held in New York today, as the Argentine government attempt to come to a deal with certain hedge funds suing for repayment of bonds purchased in the aftermath of the country’s last default around 12 years ago. Bloomberg is reporting that a default by the G20 member could precipitate bondholder attempts to claw back up to up to $29 billion, around the same amount as the nation’s foreign currency reserves.
Twitter shares have risen sharply after the company reported sales of $312.2 million, far outpacing expectations of $282.8 million. Shares in the social network company rose by 30% after the report, after having fallen by 43.8% over the course of 2014.
Related Posts: