European Stocks Falling as Portuguese Government Bonds Yields Climb
July 10, 2014 5:35 pm
July 10, 2014 – Indices News
Asian stock were mixed as Hang Seng (+0.27%), TSEC 50 (+0.79%) and the Australian ASX (+0.22%) all reversed from a two days of bearish momentum and demonstrated a new bullish trend. The majority of the upwards movement was driven by the utilities sectors. Korea Electric Power Crop, went up by 4.8%. The Nikkei 225, however, dropped -0.56%following core machinery orders data which declined by 20%.
A sharp bearish move pushed European stocks to a two month low following negative data released earlier today and due to banking turmoil in Portugal sending the financial sector across Europe sliding. The French CAC 40 decreased by -1.25% and is currently moving around 4,304. This French CPI and Industrial production reports were both negative. The yield on 10-year Portuguese government bonds climbed to 3.97% causing banks in Italy, Portugal and Spain to plunge. These banks are major players as they have large investments across the region.
Following the bearish sentiment during the EU session, the US session opened lower. The S&P 500 is down -0.73%, the most in 8 weeks. The decision by one of Portugal’s biggest banks to delay a debt payment is producing market uncertainty. The first major speech from Stanley Fischer as vice chairman of the Federal Reserve will happen at 4:30 p.m. Eastern time.
July 10, 2014 – Indices News
Asian stock were mixed as Hang Seng (+0.27%), TSEC 50 (+0.79%) and the Australian ASX (+0.22%) all reversed from a two days of bearish momentum and demonstrated a new bullish trend. The majority of the upwards movement was driven by the utilities sectors. Korea Electric Power Crop, went up by 4.8%. The Nikkei 225, however, dropped -0.56%following core machinery orders data which declined by 20%.
A sharp bearish move pushed European stocks to a two month low following negative data released earlier today and due to banking turmoil in Portugal sending the financial sector across Europe sliding. The French CAC 40 decreased by -1.25% and is currently moving around 4,304. This French CPI and Industrial production reports were both negative. The yield on 10-year Portuguese government bonds climbed to 3.97% causing banks in Italy, Portugal and Spain to plunge. These banks are major players as they have large investments across the region.
Following the bearish sentiment during the EU session, the US session opened lower. The S&P 500 is down -0.73%, the most in 8 weeks. The decision by one of Portugal’s biggest banks to delay a debt payment is producing market uncertainty. The first major speech from Stanley Fischer as vice chairman of the Federal Reserve will happen at 4:30 p.m. Eastern time.
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