Markets Making Big Comeback, Spanish Yields Falling Nicely

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Photo: Flickr / pierpaolop

UPDATE 5:45 AM:

And markets are turning around nicely.

In the last several minutes, steep losses in Spain have been erased (the IBEX has gone from being down close to 2% to being off just less than 0.2%) and Spanish borrowing costs are off sharply.

Italy is now up 0.4% on the day.

US futures are still pointing to a slightly negative open.

It’s not clear what’s caused the markets to turn around. A not horrible Spanish bond auction may have helped.

That being said, there’s been a string of poor economic data out over the past several hours, including confirmation that Germany’s economy is starting to crack.

 

ORIGINAL POST: Looks like another rough morning.

After a weak Chinese Flash PMI and a series of clearly contractionary European flash PMIs, everything is lower today.

Crude oil is about to drop below $80.

US futures are down about 0.5%.

Gold is below $1600

And Europe is getting smoked. The Spanish market is down 1.6%. Italy is off 0.6%. Germany is down 0.9%.

So basically we’re seeing a combination of weak data, and perhaps some global reaction to yesterday’s Fed, which may have been a tad more hawkish than expectations.

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