Dismal jobs report pushes up Treasury prices
Treasury prices shot higher Friday after a weak jobs report.
The yield on the benchmark 10-year Treasury note fell to 2.06 percent after the Labor Department released its monthly employment survey. The yield was 2.18 percent late Thursday. The price of the note jumped $1.13 for every $100 invested.
Bond yields fall when their prices rise. That means more people are trying to buy the bonds, which are less risky than stocks and commodities. Investors tend to pile into Treasurys when they’re worried about the economy.
Treasury yields also fell Wednesday and Thursday as traders worried that Spain could become the next European country to run into trouble with its debts.
The government said 120,000 net jobs were created in the U.S. last month, far fewer than analysts were expecting and down from more than 200,000 in each of the three previous months. The unemployment rate edged down to 8.2 percent from 8.3 percent, but mostly because more people stopped looking for work
Bond trading closed at noon Eastern for the Good Friday holiday. Stock and commodities trading were closed. Stock index futures fell sharply in the 45 minutes trading was open after the jobs report came out. Standard Poor’s 500 index futures fell 1.1 percent in the abbreviated session.
In other bond trading, the yield on the 30-year Treasury bond fell to 3.22 percent from 3.32 percent late Thursday. Its price jumped $2.03 per $100 invested. The yield on the two-year note fell to 0.32 percent from 0.35 percent.
The yield on the three-month T-bill was 0.07 percent.
Stock futures, dollar sink after jobs data
By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — U.S. stock futures and the dollar slumped Friday, while Treasury prices surged after government data delivered an unwelcome surprise on a day when most markets were closed: Only 120,000 jobs were created in March, well below market expectations.
Equity futures had been slightly higher, but turned sharply lower after the Labor Department report — the first time since November that job growth dropped below the 200,000 level. Economists surveyed by MarketWatch expected a rise of 210,000.
The unemployment rate fell to 8.2% from 8.3%, mostly because more people dropped out of the work force.
Read more about the jobs report.
Futures on the Dow Jones Industrial Average
/quotes/zigman/8750834 DJM2
-1.06%
dropped 132 points to 12,846 and those on the Standard Poor’s 500 stock index
/quotes/zigman/900181 SPM2
-1.17%
fell 15.30 points to 1,374.90.
U.S. added 120,000 jobs in March
The U.S. economy added 120,000 jobs last month, less than expected and an indication that momentum could be slowing. Phil Izzo and David Wessel have the details. Photo: Joe Raedle/Getty Images
Nasdaq 100 futures
/quotes/zigman/4225619 NDM2
-1.13%
declined 30 points to 2,723.70.
The U.S. stock market is closed for the Good Friday holiday, but U.S. stock futures gave an indication of how the market may open on Monday when traders return from the long Easter weekend.
As the stock market’s traditionally worst six-month period (May through October) is approaching and after a blowout first quarter, some on Wall Street see a stock slide looming.
Read more about the outlook for stocks.
U.S. equities closed this week with losses. The Dow
/quotes/zigman/627449 DJIA
-0.11%
fell 0.1% on Thursday, posting a weekly loss of 1.2% for its worst week since mid-December. The SP 500
/quotes/zigman/3870025 SPX
-0.06%
also ended marginally lower yesterday, registering a loss of 0.7%.
Read more about Thursday’s action.
The jobs report “likely means that QE3 [a third round of quantitative easing] is alive and about to be implemented, but that is not all,” said Kevin Giddis, fixed-income strategist at Morgan Keegan Co., in emailed comments. “There are increased worries about the euro zone and investors appear to [be] more defensive in their spending,” he noted.
ECONOMY AND POLITICS
Economy and Politics page
March payroll growth disappoints
The U.S. economy added just 120,000 new jobs in March, the smallest increase
in five months, says the Labor Department. The unemployment rate edged
down to 8.2% due largely to folks dropping out of the work force.
• Jobs report not a game-changer
(First Take)
•
Is the jobless recovery still alive? (FINS)
• Impact of jobs numbers on Obama ratings
•
Romney calls jobs ‘very troubling’
•
U.S. economic calendar
•
Global economic calendar
• Columns:
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Delamaide
Kellner
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This week, concerns about the euro-zone debt crisis were rekindled by a poor bond auction in Spain, which triggered a spike in borrowing costs for the southern European nation.
“The bottom line is that as long as Europe is unsettled, as long as the job market is less than steady, as long as the Fed keeps pumping new stimulus into the market, yields will stay low and investors will stay where the water is calm…in Treasurys,” Giddis said.
Bonds rally
Investors sought the perceived safety of government bonds Friday; the bond market is open for a holiday-shortened session.
Treasury prices rallied, pushing yields lower.
The yield on benchmark 10-year Treasury notes
/quotes/zigman/4868283/delayed 10_YEAR
-5.68%
, which move inversely to prices, sank 13 basis points to 2.05%. The yield was at 2.193% shortly before the release of the jobs data.
Read more about the action in the bond market.
In the currency markets, the dollar fell against other major currencies, posting a particularly steep drop against the Japanese yen, which tends to be seen as a safe-haven currency.
Read Currencies.
The dollar index
/quotes/zigman/1652083 DXY
-0.28%
, which tracks the performance of the greenback against a basket of rivals, dropped to 79.826 in afternoon trade from 80.084 before the data. The index traded at 80.101 late Thursday.
The dollar
/quotes/zigman/4868099/sampled USDJPY
-0.9509%
fell 0.8% against the Japanese unit to 81.57 yen, while the euro
/quotes/zigman/4867933/sampled EURUSD
+0.2232%
gained 0.3% to $1.3096.
The commodity markets are closed on Friday.
/quotes/zigman/8750834
Add to portfolio
DJM2
/quotes/zigman/900181
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SPM2
/quotes/zigman/4225619
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NDM2
/quotes/zigman/627449
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DJIA
/quotes/zigman/3870025
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SPX
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10_YEAR
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EURUSD
Polya Lesova is MarketWatch’s New York deputy bureau chief.
GLOBAL MARKETS-US stock futures hammered on US jobs data
* Stock futures fall as March U.S. payrolls disappoint
* Europe, U.S. and some Asia markets closed for holiday
* Euro rallies, off three-week lows vs dollar
* Gold heads for weekly loss
By Chikako Mogi and David Gaffen
NEW YORK/TOKYO, April 6 (Reuters) – U.S. stock futures fell
more than 1 percent and Treasuries prices rallied in a
holiday-thinned session on Friday following disappointing U.S.
job growth for March.
U.S. payrolls grew by 120,000 in March, far below the
expected gain of 203,000 jobs.
Trading volumes were light because of the Good Friday
holiday and market closings in Europe, and Treasuries rallied
sharply, with the benchmark 10-year note gaining 26/32 to drop
its yield to 2.10 percent.
SP 500 futures fell 16.2 points, or 1.2 percent, to
1374, suggesting a weak open on Monday as the cash market is
closed Friday. Nasdaq 100 futures dropped 1.1 percent, or
31.25 points, to 2722.75 in thin trading. Dow futures
dropped 137 points, or 1.1 percent, to 12,847.
The euro rose against the dollar to $1.3092 after
hitting a three-week low of $1.3035 on Thursday and was poised
for its worst week in nearly four months, while the dollar index
, measured against key currencies, slipped from three-week
highs to 79.86.
The weak payrolls report could renew hopes for more monetary
stimulus from the Federal Reserve. This week’s release of
minutes from its March meeting suggested less of an appetite for
more stimulus despite committee members expressing worries about
the sluggish pace of U.S. growth.
“This is going to keep the Fed in easy-policy mode,” said
Sean Incremona, economist at 4cast Ltd in New York.
“They’re going to want to see a step toward 300,000 before
they start to think about seeing a stronger outlook for the
economy.”
The SP 500′s loss for the week of 0.7 percent was its
biggest weekly decline of the year as yields on Spain’s debt
continued to march higher and its equity market plumbed lows not
seen since the height of the euro zone’s crisis last year.
Spain’s rising bond yields, which have revived concerns
about Europe’s debt problems, could temper buying interest in
coming weeks.
U.S. markets next week will focus on the beginning of
earnings season, as bellwethers J.P. Morgan Chase Co
and Google Inc are expected to report results.
Trading was thin as markets in Australia, Hong Kong and
Singapore were closed for the long Easter holiday weekend.
Asian shares struggled earlier on Friday as investors stuck
to the sidelines, avoiding risk after rising yields in weaker
euro-zone economies refuelled concerns about the region’s debt
issues.
MSCI’s broadest index of Asia Pacific shares outside Japan
inched higher with a 0.09 percent gain. The
index hit a four-week low on Thursday.
A slew of data due next week from China, the world’s second
largest economy after the United States, also deterred investors
from taking positions, as signs of sharper-than-expected
slowdown could further undermine sentiment.
Gold ticked higher to $1,637.99 an ounce in thin
trade on Friday but was headed for a weekly decline of more than
2 percent. Bullion hit a near three-month low of $1,611.80 this
week. Metals futures markets are closed Friday.
Oil rose on Thursday after two straight days of losses on
firm U.S. data and fears of Iran-related supply disruptions.
Brent crude futures climbed 0.89 percent to settle at
$123.43 a barrel, and U.S. crude jumped 1.81 percent to
settle at $103.31. Energy futures trading is closed Friday.
RATE FUTURES REPORT: Yields Seen To Fall On Anemic Job Gains
–Reaction perhaps overdone because of illiquid holiday market
–Disappointing jobs report lifts Treasury futures to 3 1/2-week highs
–Hope fade for late 2013-early 2014 funds rate hike
CHICAGO (Dow Jones)–Data revealing much slower job growth in the U.S. ignited a strong rally for most U.S. interest rate futures contracts on Friday, but a lack of liquidity during the holiday-shortened session may have exaggerated the market’s move.
Higher prices reflect expectations for lower rates. Friday’s action amounted to a yield curve flattening, as investors predicted that longer-term rates would fall and shorter-term rates would hold near record low levels.
In federal-funds …
Disappointing March jobs report sends futures lower
NEW YORK |
NEW YORK (Reuters) – Stock futures closed lower on Friday in brief, holiday-thinned trading after a much weaker-than-expected report on U.S. job growth for March.
Trading volumes were light because of the Good Friday holiday and market closings in Europe. SP 500 futures fell 1.2 percent, suggesting a weak open on Monday as the cash market is closed Friday.
U.S. payrolls grew by 120,000 in March, worse than the forecasted gain of 203,000 jobs. The unemployment rate dipped to 8.2 percent, down from 8.3 percent in February.
The weak payrolls report could renew hopes for more monetary stimulus from the Federal Reserve. This week’s release of minutes from its March meeting suggested less of an appetite for more stimulus despite committee members expressing worries about the sluggish pace of U.S. growth.
U.S. equities have rallied sharply in recent months, gaining nearly 30 percent since early October to push the SP 500 near four-year highs. The market has stalled in the last few weeks as investors question the swiftness of the gains and whether economic data is strong enough to warrant higher stock prices.
“This is going to keep the Fed in easy-policy mode,” said Sean Incremona, economist at 4cast Ltd in New York.
“They’re going to want to see a step toward 300,000 (job gains) before they start to think about seeing a stronger outlook for the economy.”
SP 500 futures fell 16.20 points to 1374. Nasdaq 100 futures dropped 1.1 percent, or 31.25 points, to 2722.75 in thin trading. Dow futures dropped 137 points, or 1.1 percent, to 12,841.
Earnings will come to the fore next week, with bellwethers Google Inc (GOOG.O) and J.P. Morgan Chase Co (JPM.N) expected to report results.
The SP 500′s loss for the week of 0.7 percent was its biggest weekly decline of the year as yields on Spain’s debt continued to march higher and its equity market plumbed lows not seen since the height of the euro zone’s crisis last year.
On Thursday, the Dow Jones industrial average .DJI dropped 14.61 points, or 0.11 percent, to 13,060.14 at the close. The Standard Poor’s 500 Index .SPX dipped 0.88 of a point, or 0.06 percent, to 1,398.08. But the Nasdaq Composite Index .IXIC gained 12.41 points, or 0.40 percent, to 3,080.50.
(Editing by Padraic Cassidy)
Oil prices rise on Iran supply fears
Oil prices rose again on Thursday, pushed up by concerns over disruptions to supplies from Iran.
As well as imminent western sanctions against Tehran because of its nuclear programme, the country’s efforts to export crude will be complicated by news that a major Chinese ship insurer is no longer going to provide cover for tankers carrying Iranian oil.
Brent crude is up by more than 12 percent since the start of the year and analysts worry that this will hit economic growth.
Simon Wardell, Senior Oil Analyst with IHS Global Insight, said prices must fall to avoid such an impact: “The global economy is still recovering and these sorts of prices knock that back a bit, so certainly we should see prices lower.
”
With a European Union embargo on Iranian oil coming into force at the start of July, and Japanese refiners reportedly planning to cut crude imports from Iran, Tehran will be even more dependent on buyers like China – its top customer – which is why the tanker insurance move is so significant.
Reuters is reporting that sources at insurer China PI Club have said that the company does not want to stand alone in the market, especially after insurers in Japan and Europe plan to either limit or ban their own coverage for tankers operating in Iran.
The China PI Club, whose members include major Chinese shipping firms Sinotrans and COSCO Group, is the first Chinese maritime insurer to confirm it will halt business with tankers operating in Iran.
“Many ship owners want to join our club and want our club to cover this risk, but considering all these regulations from the United States and the EU, I know the China PI club will not do that,” said a Hong Kong-based official with the insurer, which provides coverage to more than 1,000 vessels.
“The China PI club will not take the risk.
We have asked our members not to go there, if they go there, they take their own risk,” the official added, who wished not to be named because he was not authorised to speak to the media.
Iran’s other major buyers — India, Japan and South Korea — are running into similar problems, raising questions on how Tehran will be able to continue to export the bulk of its oil.
Iran sells most of its 2.
2 million barrels per day of oil exports in Asia, where China, India, Japan and South Korea are the four biggest buyers.
Chinese imports from Iran are already down more than 21 percent in the first two months of 2012 to around 395,000 barrels per day compared to the same period last year.
SOURCE: euronews
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Gold, Silver and Crude Oil Prices and Trading
Gold futures prices finished pit trade Thursday higher on
Short covering and bargain-hunting after the strong selling
pressure that took prices to an 11-wk low Wednesday.
Higher Crude Oil prices boosted the precious metals Bulls, but
a higher USD index Thursday limited the upside.
Jun Gold last traded + 7.20 at 1,628.00 oz.
Spot Gold was last quoted + 16.60 at 1,630.00 oz.
May Comex Silver last traded + 0.636 at 31.68 oz.
The precious metals markets are working to recover from strong
downside price action Tuesday and Wednesday that produced fresh
near-term technical damage in Gold and Silver. The Bulls have
work to do in the near term in both markets.
The European Union (
EU
) sovereign debt crisis rose up again this week as Spanish and
Italian bond yields rose significantly, pressuring the Euro
currency and boost the USD index Thursday.
Do not be surprised if the EU debt crisis is the focus again
next week. The questions on traders’ minds is whether Gold would
act like a risk asset and be pressured by the situation, or if
Gold will see fresh safe-haven demand on any escalation in the EU
debt crisis.
The USD index traded higher Thursday and hit a fresh 3 wk high
on more Short covering due to the Dollar-positive implications of
no further quantitative easing (QE) from the US Fed.
The stronger “Greenback” is a Bearish underlying factor for
the precious metals.
Crude Oil prices were up on Thursday after falling to a 7-wk
low Wednesday. The weaker near-term technical posture of the
Crude Oil market is also a negative for Gold and Silver.
WTI Crude Oil last traded at 103.27 + 1.80 (1.77)
Traders are anticipating what some are calling the most
important US economic report of the month Friday morning; the US
employment report.
The London PM Gold fixing was 1,621.00 vs. the prior PM fixing
of 1,676.25.
The US markets are closed for Good Friday.
Paul A. Ebeling, Jnr.
.com
Paul A. Ebeling, Jnr. writes and publishes The Red
Roadmaster’s Technical Report on the US Major Market Indices, a
weekly, highly-regarded financial market letter, read by opinion
makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and
stock markets since 1984, following a successful business career
that included investment banking, and market and business
analysis. He is a specialist in equities/commodities, and an
accomplished chart reader who advises technicians with regard to
Major Indices Resistance/Support Levels.
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Iran Sanctions Likely Cost You 25 Cents a Gallon: Pros
Twenty-five cents a gallon — that’s about how much some international energy experts say the tough U.S. sanctions on Iran’s oil industry are costing Americans at the pump.
As U.S. consumers cope with gas prices that are approaching an average of $4 a gallon, some international trade experts say the cost of the sanctions the U.S. imposes — as in the case of the Iran measures — is something political leaders should discuss more openly. Instead, they say, most politicians act as if sanctions affect only the country targeted — something these experts say isn’t true.
“The approach is always that the costs are for them and the benefits are for us,” says Bill Reinsch, president of the National Foreign Trade Council (NFTC), a Washington lobbying organization that generally opposes economic sanctions. “The Iran case is interesting,” he adds, “because of the impact of sanctions on our energy sector.”
Energy experts say it’s difficult to pinpoint precisely how much sanctions on Iran are costing consumers as they filter down to the gas pump. But Lucian Pugliaresi, president of the Energy Policy Research Foundation, a Washington nonprofit organization that studies energy economics, says it’s possible to make an estimate.
The sanctions the U.S. and other countries have slapped on Iran’s energy sector and on its central bank (aimed at curtailing its oil exports) are costing Iran about 300,000 barrels a day in exports, Mr. Pugliaresi estimates. When added to other factors affecting the international oil market, that decrease in exports may have added about $10 to the current price of a barrel for crude, he says.
And that $10 increase translates roughly to about a 25-cent increase in the cost of a gallon of gas in the US, Pugliaresi says.
Of course the Iran sanctions — which President Obama has continued to ratchet up, including at the end of March when he decided to move forward with sanctions on Iran’s Central Bank he had signed into law in January — are designed to dissuade Iran from pursuing a nuclear program with a weapons capability, a goal many consumers may agree with.
- Why $4 a Gallon Gas Doesn’t Matter
- Epic Summer for Gasoline?
- Jim Cramer’s Plays on $5 Gas
But the NFTC’s Mr. Reinsch says consumers should be told what sanctions are going to cost.
“It’s a legitimate argument to say the benefits of the aim of these sanctions — convincing Iran not to build nuclear weapons – outweigh the economic costs,” he says. “What is not acceptable is to pretend there are no costs, or to ignore them.”
The Iran sanctions legislation that passed in January requires the president to consider the impact of moving forward on the central bank measures. Along with his decision in March to proceed with implementation, Mr. Obama issued a memo saying that after “carefully considering” factors including the state of the global economy, the availability of alternative oil supplies, and U.S. and other countries’ strategic reserves, he had determined that conditions existed to move forward.
Reinsch says his fire is aimed at the “hypocrisy” of members of Congress who press for ever-tougher sanctions on Iran’s oil sector, “but then turn around and complain about prices at the pump” as if there were no connection.
Another factor critics of sanctions raise is whether or not they are having the intended impact. Economists and regional experts generally agree that the sanctions on Iran are having an impact on the country’s economy. But less certain, critics say, is whether or not that will translate into the Iranian regime backing down on its nuclear ambitions.
In any case, Pugliaresi says consumers can take heart in the fact that the oil futures market seems to see the factors keeping crude oil prices up as temporary and moderating within a couple of years. Which means gas prices should be able to come back down — barring of course some other crisis in supply markets.
Gujarat govt takes steps to check oil price rise
In view of the rising edible oil prices, the state government on Thursday announced restrictions on oilseed and oil stocks that can be held by millers and traders.
“The state government has decided to implement stock-limit on edible oil and oilseed that oil millers and traders can hold. This is aimed at preventing hoarding of oil and oilseeds, and to check further price rise,” food civil supplies minister Narottam Patel said.
The action comes in the backdrop of the sharp increase in edible oil prices. The price of a 15-kg tin of groundnut oil has increased to Rs2,100, up from Rs1,800-1,900 a few weeks back.
According to the government, oilseed wholesalers can hold up to 2,000 quintals of oilseeds, while retail traders will be allowed to hold up to 100 quintals. The oil millers can stock raw material of up to two months’ requirement, and finished oil stocks quantity of up to one month’s production.
Likewise, wholesale traders of oil are allowed to stock up to 600 quintals of oil, i.e. 4,000 tins, while retail traders can stock up to 45 quintals, i.e. 300 tins.
However, there are no restrictions on farmers maintaining oilseed stocks at their own places.
The minister said that the government had prepared a detailed plan to keep a control on black-marketing.
“Strict action would be taken under The Prevention of Black Marketing against telia rajas (oil millers) to check the rising oil prices. We are determined to keep the prices under check,” Patel warned.
While announcing the measures, the minister lashed out at the central government for failing to check the sharp increase in prices of essential items. He said that cotton farmers in the state had suffered heavily due to Centre’s recent actions.
S&P 500 Futures Rise Before Jobs Report; Asian Stocks, Won Drop
April 6 (Bloomberg) — John Vail, chief global strategist and head of asset allocation at Nikko Asset Management in Tokyo, talks about U.S., Japan, and Australia stocks.
Vail also discusses Federal Reserve monetary policy, Europe’s sovereign debt crisis, and China’s economy. He speaks with John Dawson on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)
April 6 (Bloomberg) — Jesper Koll, head of equity research at JPMorgan Chase Co. in Tokyo, talks about the nation’s stocks and his investment strategy.
Koll also discusses the U.S. economy. He speaks with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)
April 6 (Bloomberg) — Stephen Wood, chief market strategist at Russell Investments, talks about the U.S. economy, stocks and investment strategy.
Wood also discusses Europe’s sovereign debt crisis. He speaks with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)
U.S. equity futures rose before data
that may show American employers added more than 200,000 workers
for a fourth month. Asian stocks and South Korea’s won fell on
concern Europe’s debt crisis will weigh on global growth.
Standard Poor’s 500 Index futures added 0.2 percent as of
7:15 a.m. in New York. Ten-year Treasury yields increased one
basis point to 2.19 percent. The MSCI Asia Pacific Index (MXAP) slid
0.4 percent, and the won lost 0.4 percent, weakening against all
major peers. Taiwan’s Taiex (TWSE) Index rallied 0.9 percent after the
finance minister said some foreign investors may be exempt from
a capital-gains tax.
U.S. nonfarm payrolls probably rose by 205,000 in March
after climbing by 227,000 in February, economists in a Bloomberg
News survey forecast ahead of today’s data. French borrowing
costs increased at an 8.44 billion euro ($11 billion) auction
yesterday amid growing concern that Spain will follow Greece,
Portugal and Ireland in requiring an international bailout. Most
markets are closed today for holidays.
“Europe’s economy faces a downside risk, and it remains to
be seen whether it will spread across the world,” said Kazuyuki Terao, chief investment officer of RCM Japan Co. RCM oversees
about $138 billion globally. “It’s hard to buy today. The U.S.
jobs data may be relatively strong, but we don’t know how the
market will react to it.”
U.S. equity index futures will trade until 9:15 a.m. New
York time on CME Group Inc.’s Chicago Mercantile Exchange and
Treasuries will trade for part of the day to allow investors to
react to the nonfarm payrolls report. There will be spot trading
in precious metals. Oil trading is closed on the New York
Mercantile Exchange and London’s ICE Futures Europe exchange.
The London Metals Exchange is also shut today.
Japan’s Shares Retreat
Japan’s Nikkei 225 Stock Average (NKY) slid 0.8 percent, South
Korea’s Kospi index was little changed and the Shanghai
Composite Index added 0.2 percent. Markets in Hong Kong, India,
Australia, Singapore, Indonesia, Thailand, Philippines, New
Zealand and Sri Lanka were closed in Asia.
Astellas Pharma Inc. (4503) rose 3.2 percent in Tokyo after the
drugmaker’s new treatment for overactive bladders won the
backing of advisers to U.S. regulators. Kobe Steel Ltd., Japan’s
fourth-largest steelmaker, slid 3.1 percent after doubling its
loss forecast for this fiscal year.
Taiwan Trading Tax
Taiwan’s Taiex snapped a three-day streak of losses.
Overseas investors without offices and direct business
operations in Taiwan will be exempt “in principle” from a
capital-gains tax on stock trades that the government is
deliberating, Finance Minister Christina Liu said during a
government panel discussion yesterday about the tax.
The euro traded at 107.73 yen from 107.61 yesterday, set
for a 2.6 percent drop this week, the most in seven months. The
17-nation currency was little changed at $1.3069.
Spain, the euro-region’s fourth-largest economy, is in
“extreme difficulty,” Prime Minister Mariano Rajoy said April
4. Spanish bonds fell yesterday, pushing the yield on the 10-
year benchmark bond to 5.84 percent, the highest since December.
France’s trade deficit in February widened to 6.4 billion
euros compared with 5.59 billion euros in January, the country’s
customs office said in an e-mailed statement.
“We haven’t seen any major improvements in the European
debt situation,” said Marito Ueda, senior managing director in
Tokyo at FX Prime Corp., a currency-margin company. “After
Greece, investors may be beginning to shift their focus onto
countries like Spain, Portugal and Italy.”
To contact the reporters on this story:
Lynn Thomasson in Hong Kong at
lthomasson@bloomberg.net;
Yoshiaki Nohara in Tokyo at
ynohara1@bloomberg.net
To contact the editor responsible for this story:
Rocky Swift at rswift5@bloomberg.net
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