- Spain bans short sales on all stocks
- Italy bans selling some stocks
- Spanish 10-year yields hit record high 7.56%
- LCH raises margins on Spanish and Italian debt
- Italian 10s up 17 bps to 6.33%
- US 10-year yields hit record low 1.39%
- ECB bought no bonds last week
- Canada’s Nexen energy taken over by Chinese company in $15B deal
- Putin says Russia to continue to hold 40% of FX reserves in EUR
- Monti: No grounds for emergency EU Summit (translation: we’re all out of ideas)
- Brazilian stocks hit lowest since October
- Chinese oil demand falls for first time since 2009
- Portugal deficit shrinks
- S&P 500 -0.9% to 1350
- JPY leads, NZD lags
It felt like a washout today so a bounce is likely but given the fundamentals, it’s clear that the worst is ahead for Europe. The euro fell as low as 1.2067 after Spain announced the short sale ban. The move sparked a short squeeze and Spanish shares rebounded 5%, helping the euro bounce back above 1.2125.
Cable took out some stops below 1.55 but bottomed for the day shortly afterwards, inching back to 1.5524.
The commodity bloc was hit hard, although CAD was buffered by the Nexen takeover.
