Spanish bailout does little to temper market negativity $CAT:xnys
- Published: 12 June 2012
- US markets ended the session with steep losses despite the EUR100 Billion bailout paid to the Spanish government in order to recapitalise their ailing banking system. Investors were very cautious going to the weekend with upcoming Greek elections approaching
- In positive news, Chinese exports rose by 15.3% in May beating analysts estimates. Imports also rose more than expected increasing by 12.7%, this was roughly double what the market was expecting
- US financials were weaker as investors continue to worry about the state of their European counterparts and the potential ramifications of a potential escalation of the debt crisis. The S&P500 Financial Index fell 1.9% with market leader Morgan Stanley falling 2.5%
- Leading the moves on the Dow on Friday was BAC, HPQ, CAT and JPM each falling 3.70%, 3.46%, 2.75% and 2.55% respectively
- DOW –1.14%, S&P500 –1.26%, NASDAQ –1.70%
- The EUR was weaker before finding some support at 1.2450, AUD down
- Gold touched USD1600 before falling and Crude fell to October lows
