Spanish stocks rebounded Thursday while the pressure on the country's government bonds eased, as investors reacted positively to the government's confirmation that it will nationalize the country's fourth largest bank.
MADRID (AP) -- Spanish stocks rebounded Thursday while the pressure on the country's government bonds eased, as investors reacted positively to the government's confirmation that it will nationalize the country's fourth largest bank....
And it all started off so promisingly, when after the biggest selloff in US stocks in two months, the BOJ and its preferred banks once again sold 6J (i.e., bought USDJPY) in the morning Japan session (while collecting CME liquidity rebates of course), sending the pair from below 108 to half the way to 109, and naturally taking global futures higher while pushing yields lower when as ITC says a "large TY seller knocked USTs to lows during the session" - hmmm, wonder who the large seller was. And then...
Crude oil front month futures contracts rebounded during trading on Wednesday, signaling investors of the futures bottoming out. The rebound from Wednesday continued into the early hours of trading Thursday. However, the rebound was short lived and the futures slumped once again, ending the trading session in the red.
The euro and European stocks rallied strongly on Wednesday and pressure on Spain eased, but the eurozone debt crisis weighed heavily with a credit watch for Portugal and Germany struggling to sell bonds.Leading EU figures warned that financial markets were underestimating the will of EU leaders and institutions to defend the euro and the eurozone.But in a new sign of the extent of anxiety among investors, a German bond issue was undersubscribed.
Lately, the National Bank of Greece (ADR) (NYSE:NBG) has been showcasing extreme sensitivity in the much heated bailout extension arena by rising and crashing on the slightest bailout verdicts from the Eurozone.
By Chris Ciovacco: European timelines leave the door open to ongoing stock market volatility within the context of a bullish trend. Stocks have reacted positively to significant European progress, but firm debt crisis decisions may not come for another six weeks due to the following:
CDS rates to protect against default by Spain rose to an all-time high today as Investors brace for more pain in Spain.
Spain was firmly back in the spotlight on Friday, after news of a sharp rise in borrowing by the region’s banks from the European Central Bank triggered losses across European stocks, but especially for the IBEX 35 index XX:IBEX -3.58% , which fell more than 3% to a three-year low.