Borrowing costs in Spain surged with yields hitting 7.13% on 10-year Spanish government bonds on Monday, exceeding the 7% point at which other troubled European countries -- Greece, Portugal and Ireland -- lost access to the debt markets.
Furthermore, a report from the Spanish central bank said that bad debts in the country were at their highest for 18 years in April, sparking concerns that the EUR100 billion bank ($126 billion) bailout might not be enough to bolster the national financial system.
The euro climbed slightly on Tuesday to $1.2602, from $1.2575 late Monday.
"Perversely, Spanish yields over 7% could be positive in that it keeps the gun to the head of policy makers," says RBS Morgans principal investment adviser Christopher Macdonald.
The dollar gained 0.5% against the yen overnight, to Y79.11, before slipping back to Y79.05 early in Asia. The Australian dollar remained resilient, holding on to gains made on Monday, at $1.0122.
Japan's Nikkei Average was 0.2% down, South Korea's Kospi was flat, while Australia's S&P ASX 200 was 0.6% lower.
There was also caution as investors wait and see what policymakers decide after a series of key meetings -- such as the summit of G-20 leaders currently underway in Mexico, and a meeting of the Federal Open Market Committee this week.
The small losses in Asian markets mirrored lackluster overnight trading in the U.S., where the Dow Jones Industrial Average finished 0.2% lower. In Europe, the FTSE 100 gained 0.2% and Germany's DAX gained 0.3%.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment