This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-17611764
The article has changed 8 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Spanish debt fears hit eurozone markets | Spanish debt fears hit eurozone markets |
| (40 minutes later) | |
| European stock indexes have fallen after a disappointing Spanish bond sale and continuing weak eurozone economic data hit investors' confidence. | European stock indexes have fallen after a disappointing Spanish bond sale and continuing weak eurozone economic data hit investors' confidence. |
| The Spanish government had hoped to sell up to 3.5bn euros ($4.6bn; £2.9bn) of medium-term bonds, but it was only able to find buyers for 2.6bn euros. | The Spanish government had hoped to sell up to 3.5bn euros ($4.6bn; £2.9bn) of medium-term bonds, but it was only able to find buyers for 2.6bn euros. |
| It once again raised concerns about high levels of sovereign debt in several eurozone member states. | It once again raised concerns about high levels of sovereign debt in several eurozone member states. |
| Germany's main Dax share index and France's Cac were both down 2%. | |
| In the UK, the FTSE 100 was 1.4% lower, while Wall Street's Dow Jones was down 0.8% in early trading in New York. | |
| Michael Leister, rate strategist at DZ Bank said the reaction to the latest Spanish bond auction had been only "lukewarm". | Michael Leister, rate strategist at DZ Bank said the reaction to the latest Spanish bond auction had been only "lukewarm". |
| "The key thing here is the volume, they fell well short of the maximum range they intended to sell," he said. | "The key thing here is the volume, they fell well short of the maximum range they intended to sell," he said. |
| Achilleas Georgolopoulos of Lloyds Banking Group added that the Spanish bond sale had been "very disappointing". | Achilleas Georgolopoulos of Lloyds Banking Group added that the Spanish bond sale had been "very disappointing". |
| US impact | US impact |
| Market sentiment was further weakened by a survey showing continuing weakness in the eurozone services sector. | Market sentiment was further weakened by a survey showing continuing weakness in the eurozone services sector. |
| The Markit eurozone services purchasing managers' index has now posted a contraction for six out of the past seven months. | The Markit eurozone services purchasing managers' index has now posted a contraction for six out of the past seven months. |
| Meanwhile, European Central Bank (ECB) President Mario Draghi warned that the eurozone's economic outlook "remains subject to downside risks". | |
| He made the comments after the ECB kept eurozone interest rates on hold at 1% for the fifth month in succession. | |
| Mr Draghi added that the weakness in the eurozone would continue to require vigilance. | |
| "Given the present conditions of output and unemployment, which is at historical high, any exit strategy talking for the time being is premature," he said. | |
| Investor confidence was also affected by the US Federal Reserve indicating overnight that it was not considering a further round of quantitative easing (QE). | |
| Under QE, a central bank injects new money into the financial system to help boost bank lending. | |
| Spanish austerity | |
| The Spanish government is continuing with extensive cost-cutting measures to reduce both its high budget deficit and overall level of sovereign debt. | The Spanish government is continuing with extensive cost-cutting measures to reduce both its high budget deficit and overall level of sovereign debt. |
| It needs to sell bonds successfully on a rolling basis to meet its existing debt payments. | |
| In addition to the disappointing take-up of the latest auction of Spanish government bonds, the yields on those already in circulation rose, which suggests that once again investors are getting more worried about Spain's ability to meet its debt payments. | In addition to the disappointing take-up of the latest auction of Spanish government bonds, the yields on those already in circulation rose, which suggests that once again investors are getting more worried about Spain's ability to meet its debt payments. |
| The yield on 10-year Spanish bonds rose by 25 basis points to 5.7%, the highest level since January. | The yield on 10-year Spanish bonds rose by 25 basis points to 5.7%, the highest level since January. |
| Kathleen Brooks, a research director at financial website Forex, said: "In Europe the economic data is weak and sovereign concerns are flaring up once more." | Kathleen Brooks, a research director at financial website Forex, said: "In Europe the economic data is weak and sovereign concerns are flaring up once more." |