The market took a beating last week when Italian 10-year bonds rose above a 7% yield. Overnight the Spaniards joined the Italians with yields over 10% - hitting a high of 7.15%.
This was short-lived as the ECB stepped in to buy up European bonds and the yield has fallen to 6.95% in the last half hour. The rally in European bonds has helped stocks in the US and on the other side of the pond. European stocks are still down 1%, but they have halved their losses.
US stocks are set for a small decline after being down much more earlier this morning. The Euro has also moved into positive territory after trading near a 6-week low. The action today will be important after investors gave up on stocks yesterday in late trading.
Some ETFs to Watch: Rydes Euro ($FXE), SPDR International Treasury Bond ETF ($BWX), iShares Spain ETF ($EWP), iShares 20+ Year Treasury ETF ($TLT), US Oil ETF ($USO).
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