Yet another bank bailout coming, this time EU/Germany bailing out Spain. Combined with slowing exports in China and Germany, and you have a recipe for a modest sell off. South Korea raised interest rates and Moody’s Investors Service cut Spain’s rating.
“Stoxx Europe 600 Index slid 0.4% to the lowest since Jan. 20 at 9:57 a.m. in London. The MSCI World Index lost 0.5% as did futures on the Standard & Poor’s 500 Index. The Dollar Index, which tracks the U.S. currency against those of six trading partners, rose 0.3%. Copper fell to a two- month low and soybeans dropped for a fourth day. The extra yield investors demand to hold Spanish 10-year bonds instead of benchmark German bunds climbed five basis points to 227 basis points, while the euro weakened 0.5% to $1.3842.”
More info to come . . .