By Stephen Kirkland - Nov 15, 2011 9:31 PM GMT+0700
Nov. 15 (Bloomberg) -- Todd Martin, a Hong Kong-based Asia equity strategist for Societe Generale SA, talks about the outlook for global financial markets and his investment strategy. Martin speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Nov. 15 (Bloomberg) -- Peter Garnry, an equity strategist at Saxo Bank A/S, discusses his recommendations for Associated British Foods Plc, Nestle SA, Walgreen Co. and Intel Corp. He speaks from Hellerup, Denmark, with Owen Thomas on Bloomberg Television's "Countdown." (Source: Bloomberg)
Nov. 15 (Bloomberg) -- Mark Matthews, Singapore-based head of research for Asia at Bank Julius Baer & Co., talks about regional financial markets. Matthews also discusses Europe's sovereign debt crisis and the U.S. economy. He speaks with Susan Li on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Nov. 15 (Bloomberg) -- Gokul Laroia, head of Asia equities at Morgan Stanley Asia, talks about the region's stock markets and economies. Laroia also discusses Europe's sovereign debt crisis. He speaks from Singapore with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Stocks fell for a second day and the euro slid as costs to insure French bonds rose to a record and Spanish yields climbed at an auction, deepening concern about Europe’s debt crisis. Treasuries and German bunds rose.
The Standard & Poor’s 500 Index lost 0.2 percent at 9:30 a.m. in New York. The Stoxx Europe 600 Index slipped 0.4 percent and the euro depreciated 0.6 percent to $1.3548. The yield on French 10-year bonds climbed to a euro-era record relative to benchmark German bunds, as did Belgium’s and Spain’s. The 10- year U.S. Treasury yield declined three basis points to 2.03 percent. Copper fell, while oil increased.
Spain sold 3.16 billion euros ($4.3 billion) of 12-month and 18-month bills, compared with a maximum target of 3.5 billion euros, the Bank of Spain said. Mario Monti, Italy’s premier-in-waiting, faced political resistance on forming a Cabinet during talks in Rome yesterday. Economic growth in Europe failed to accelerate in the third quarter, the European Union’s statistics office said today.
There “is a clear indication of the systemic risk which continues to gnaw its way through the euro-zone,” Jane Foley, a senior foreign-exchange strategist at Rabobank International in London, said in a report today. “With the core now suffering the effects of contagion, the euro can be expected to remain vulnerable.”
Economic Data
U.S. equities slipped even after data on retail sales and New York-area manufacturing topped economists’ estimates.
Retail sales gained 0.5 percent in October, Commerce Department figures showed. The median forecast of 81 economists surveyed by Bloomberg News was a rise of 0.3 percent. Purchases of electronics jumped by the most in two years. The Federal Reserve Bank of New York’s general economic index unexpectedly rose to 0.6, the first positive reading since May.
All but two of the 19 industry groups declined in the Stoxx 600. Finmeccanica SpA tumbled 17 percent after Italy’s biggest arms company canceled shareholder payouts and predicted a surprise full-year loss. Cable & Wireless Worldwide Plc sank 17 percent as the telecommunications company suspended future dividend payments and said profit and sales declined.
Electrolux AB, the world’s second-biggest appliances maker, slid 8.3 percent after saying raw-material prices will probably cut 2 billion kronor ($297 million) from 2011 earnings and less than 1 billion kronor off 2012 profit.
EU Economic Growth
The EU’s gross domestic product increased 0.2 percent from the previous three months, when it rose at the same pace, according to EU data. That matched the median forecast of 39 economists surveyed by Bloomberg.
The cost for European banks to fund in dollars rose to a three-year high. The three-month cross-currency basis swap was at 117 basis points below the euro interbank offered rate, from minus 113 yesterday, the most expensive funding level since December 2008, data compiled by Bloomberg show.
The three-month dollar London interbank offered rate, or Libor, for three-month dollar loans climbed for an eleventh day to 0.466 percent from 0.461 percent, according to data from the British Bankers’ Association. That’s the highest level since July 29, 2010.
The euro dropped 0.8 percent against the yen, with the Japanese currency appreciating against all 16 most-traded peers monitored by Bloomberg.
The yield on Spain’s 10-year bond rose 20 basis points to 6.31 percent and the two-year yield climbed 26 basis points to 5.26 percent. The average yield on the country’s 12-month debt was 5.022 percent at auction, compared with 3.608 percent when securities of the same maturity were sold on Oct. 18. The yield on the 18-month bills was 5.159 percent, up from 3.801 last month. Credit-default swaps on Spain climbed 26 basis points to a record 483.
Yield Spreads
The extra yield investors demand to hold French 10-year bonds instead of German bunds increased to 189 basis points, the most since the common European currency was started in 1999. The Spanish-German spread widened to a euro-lifetime high of 458 basis points before trimming gains, with the Belgian-German 10- year gap topping 300 basis points for the first time since Bloomberg began collecting the data in 1993.
Credit-default swaps on French bonds climbed 24 basis points to 238, and contracts on Italy jumped 35 basis points to 597, both records.
Copper dropped for the first day in three, losing 0.9 percent in London. Soybeans jumped 1.3 percent to lead gains in 13 of 24 commodities tracked by the S&P GSCI Index.
The MSCI Emerging Markets Index fell 0.9 percent, the first decline in three days. South Africa’s rand led currencies lower, weakening 1.5 percent against the dollar. The Czech PX Index slipped 1.7 percent after a report showed growth stalled in the third quarter for the first time since 2009. South Korea’s Kospi Index (KOSPI) retreated 0.9 percent and India’s Sensex Index sank 1.4 percent.
To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
Posts
No comments:
Post a Comment