Eurozone Debt Crisis Deepens Sending Euro Lower And Gold To New Record At EUR 1,080/oz
by Tyler Durden
The euro, global equities and bonds in peripheral Eurozone countries are all lower this morning on heightened concerns about the debt crisis in the Eurozone. The euro has fallen against all currencies and is now at a record low against gold at EUR 1,080.21/oz. Silver is lower against most currencies but is higher against the Australian dollar and the euro ( EUR 24.80/oz).
Greece’s 10 year government debt has surged to 16.98%, Portugal’s to 9.6% and Ireland’s to a new record at 10.76%. The yield on Italian 10-year government debt is up 9bp to 4.85% after S&P cuts its rating outlook on Italy’s sovereign debt to “negative” from “stable”. The Spanish 10 year bond has risen 11 basis points to 5.57%.
Equity markets in Europe have followed their Asian counterparts lower. Asian equities fell due to Eurozone debt concerns but also inflation concerns and the risk that the US economic recovery is faltering. Italy’s stock market (FTSE MIB) is down 3% while Spain’s IBEX is down 1.7%