Stocks turned into red as concerns returned to market since the early morning despite the data that was released from Euro Zone today, where the debt crises’ worries over Europe renewed forcing investors to avoid high yielding assets such as Euro, Sterling Pound and stocks.
Germany sold 4.06 billion euros of 10-year bonds on average yield of 1.93% compared with the 1.98% yield recorded an auction earlier, where German borrowing cost fell today by 5 basis points as investors still consider German Bunds as the safe haven in the euro-area region. However, and despite the 1.3 times bid-to-cover ratio, Germany didn’t auction the maximum target of 5 billion euros, which pressured the euro and the stocks further to the downside.
Furthermore, U.S factory orders came below expectations during the month of November, factory orders inclined by 1.8% compared with the prior revised reading of -0.2% and below expectations of 2.0%.
In Europe DAX dropped today 0.90% and FTSE 100 declined 0.5%. The euro retreated below the 1.30 level trading as of this writing around the 1.2931. The pound also dropped trading around the 1.5632.
The AUD declined today trading around the 1.0342 level although oil prices eased today trading with some downside bias around the $102.41 in a correctional move following yesterday’s sharp gains; tensions over Iran continue which kept gold prices up around the $1610.61.
Originally posted here
