Oil Spikes, Portuguese Bonds & Stocks Crash And Eurozone Debt Crisis Returns
Wednesday, 3 July 2013
Gold inched higher in most currencies and gained over 0.5% in euros as the Eurozone debt crisis reared its ugly head again and oil spiked over $102 a barrel.
Stocks fell around the world, led by Portugal as the nation’s 10-year bond yield surpassed 8% for the first time since November after two ministers quit the government.
U.S. index futures declined and the FTSE and DAX were down 1.5% and 1.7% respectively.
Portugal’s benchmark equity gauge tumbled 7% and the 10-year bond yield surged 12% or 130 basis points to 8.02%. The Eurozone debt crisis is far from over contrary to more complacent sounds in recent months.
Greece has three days to reassure Europe and the IMF that it can deliver on conditions attached to its bailout in order to receive its next tranche of aid, four euro zone officials said on Tuesday.