Global Markets Absorb Continued European Punches
Global stocks take a sharp drop as European worries and poor economic news trip up investors around the world.
Today’s rout started in Asia with the Nikkei declining 0.28%, the Topix dropping 0.47% and the Hang Seng off by 1.92%.
As trading moved on to Europe, major Eurozone indexes took major hits with the Stoxx 50 plunging 2.04%, the FTSE 100 dropping 1.7% and the DAX shedding 1.8%.
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Gold (NYSEARCA:GLD) gained 0.59%.
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Fear was the watchword today as Spanish and Italian bond yields spiked, the Spanish 10 year hitting 6.7%, a six month high and close to the red line of 7%, while Italy’s 10 year yield reached 5.9%.
Greece continues to be a problem as the country approaches its pivotal June 17th election and yesterday the European Central Bank dampened hopes for central bank intervention when it said that it wouldn’t participate in bailing out Bankia, Spain’s recently nationalized 3rd largest bank.
At home, the U.S. 10 Year Treasury Bond yield hit 1.62%, a record low, as capital continued its flight to safety.
Bottom line: Europe roils world markets for another day as concerns over Greece and Spain mount.
John Nyaradi is the author of The ETF Investing Premium Newsletter.