Spanish Debt Fears Grow, As Yields Cross 6%

Asian markets skidded on Monday, following Friday’s slide in the West. The Nikkei tanked 1.7% to 9471, the Kospi dropped .8%, and the ASX 200 declined .5%. In greater China, the Hang Seng fell .4% and the Shanghai Composite eased .1%, ending a 4-day winning streak.

European markets rebounded from early losses thanks to strong US sales data. The DAX advanced .6%, CAC40 gained .5%, and the FTSE rose .3%. Yields on 10-year Spanish debt crossed above 6%, hitting their highest level this year, and the cost to insure Spanish debt spiked to a record high.

US stocks ended mixed, as the Dow climbed 72 points to 12921, while the Nasdaq slumped .8% to 2988, and the S&P 500 eased less than 1 point to 1370.

Apple shares fell 4.2% to 580.13, marking its 5th straight loss.

Apple Shares Drop for 5 Straight Days

Toy maker, Mattel Corp., tumbled 9.1% after earnings fell short of forecasts.

Currencies

The Euro briefly fell below the 1.30 mark but recovered to close up .3% to 1.3116. The Pound rose .2% to 1.5887, the Swiss Franc gained .3% to 1.0877, and the Yen climbed .6% to 80.46. The Australian Dollar dropped .4% to 1.0333, and the Canadian Dollar settled down fractionally at 1.0001.

Economic Outlook

Monday’s economic data was mixed. Retail sales blew past forecasts, rising .8% vs. forecasts for a .4% gain. On the negative side, the Empire State manufacturing index tumbled to 6.6 from 20.1, way below estimates. The NAHB housing market index unexpectedly fell to 25 from 28, the first drop in 7 months.

European and US Stocks Soar

Equities

Asian markets continued to slide on Tuesday, as concerns over Spain’s debt burden escalated. The Nikkei eased .1% to 9465, the Kospi fell .4% and the ASX 200 declined .3%. China’s Shanghai Composite slumped .9%, and the Hang Seng slipped .2% as Chinese financial shares struggled.

European markets soared as a dose of good economic data and a successful Spanish debt auction triggered a buying spree. The DAX and CAC40 surged 2.7% and the DTSE climbed 1.8%. European banks led the gains, as the sector jumped 4.1%. Germany’s ZEW economic sentiment index climbed to its highest level since June 2010, blowing past analyst forecasts.

US stocks advanced as well, but the gains were slightly less impressive. The Nasdaq spiked 1.8% to 3043, the S&P 500 rallied 1.6% to 1391, and the Dow rocketed up 194 points to 13116.

Nasdaq Soars 1.8%

Apple shares jumped 5.1%, snapping a 5-day losing streak. Citigroup climbed 3.2% after earning an upgrade from Meredith Whitney.

Currencies

The Dollar traded mostly lower on Tuesday as money flowed back into risk. The Canadian Dollar jumped .9% to .9903, the Pound rose .2% to 1.5934, and the Australian Dollar gained .4% to 1.0394. The Euro and Swiss Franc closed flat, while the Yen declined .6% to 80.90.

Economic Outlook

Building permits rose to .75M, up from .72M last month hitting their highest level since September 2008, but housing starts unexpectedly dropped to .65M from last month’s .69M.

Stocks Drop as Spanish Debt Fears Return

Equities

Asian markets rallied on Wednesday, tracking Tuesday’s gains in Western markets. The Nikkei bounced 2.1% to 9667, the Kospi gained 1% to 2004, and the ASX 200 rallied 1.4%. China’s Shanghai Composite surged 2% to 2381, its largest gain in 2 months, and the Hang Seng added 1.1% to 20781.

Despite the previous day’s cheer, European markets skidded. The CAC40 slumped 1.6%, the DAX dropped 1%, and the FTSE declined .4%. Data showed that Spanish banks are holding more bad loans than expected, confirming fears over the health of the country’s banking system.

US stocks traded lower as well. The Dow dropped 83 points to 13033, while the Nasdaq and S&P 500 shed .4%. IBM shares fell 3.5% to 200.13 after revenue fell short of forecasts, although earnings beat estimates.

Currencies

The Pound climbed .6% to 1.6022, while the Dollar gained against most other currencies. The Australian Dollar declined .4% to 1.0351, and the Yen dropped .5% to 81.25. The Euro, Swiss Franc, and Canadian Dollar all eased .1%.

Economic Outlook

Thursday’s reports will include weekly unemployment claims, existing home sales, the Philly Fed survey, and leading indicators.

Stocks Drop as US Data Disappoints

Equities

On Thursday, Asian markets traded mixed following the strong gains in the prior session. The Nikkei declined .8% to 9588, the Kospi slipped .2% to 2000, and the Shanghai Composite eased .1% to 2379. The Hang Seng jumped 1%, lifted by China Life’s 3.9% advance, and the ASX 200 edged up .3% to 4363, its highest close in 8 months.

European markets closed lower, pressured by disappointing US data. The CAC40 tumbled 2.1%, the DAX fell .9%, and the FTSE closed down fractionally. Rumors of a potential credit rating cut for France hit the country’s stocks particularly hard.

US stocks dropped as well, with the Dow shedding 69 points to 12964, dropping below the 13000 mark. The Nasdaq fell .8% to 3008, and the S&P 500 declined .6% to 1377.

Dow Falls 69 Points

Gilead Sciences surged 12% after reporting positive clinical trials for a hepatitis C drug.

Currencies

The US Dollar traded mixed against global currencies as weekly jobless claims disappointed. The Euro and Swiss Franc edged up .1%, and the Pound rose .2% to 1.6054. The Canadian Dollar and Japanese Yen both fell .4%.

Economic Outlook

Weekly jobless claims clocked in at 386K, 18K worse than forecast. Existing home sales unexpectedly declined, dropping to 4.48M from last month’s 4.6M annualized rate. Continuing the trend of disappointment, the Philly Fed manufacturing index dropped to 8.5 from 12.5.

European Markets Gain on Upbeat Data

Equities

Asian markets closed on a mixed note, following Thursday’s data from the US which fell short of expectations. The Nikkei slipped .3% to 9561, and the Kospi tumbled 1.3%. On the upside, the Shanghai Composite climbed 1.2% amid hopes for additional government easing, while the ASX 200 and Hang Seng inched up .1%.

European markets gained, led by the DAX’s 1.2% advance, fueled by upbeat German business sentiment data. The FTSE and CAC40 both rose .5%.

US stocks closed mixed, after gaining in the morning. The Dow closed up 65 points to 13029, th S&P 500 edged up 1 point, while the Nasdaq slipped .2%.

Nasdaq Surrenders Early Gains to Close Down .2%

Microsoft shares jumped 4.6% after beating analyst forecasts and garnering several analyst upgrades.

Currencies

The US Dollar fell against global currencies on Friday. European currencies led the advance, as the Swiss Franc rallied .7% to 1.1001, the Euro climbed .6% to 1.3219, and the Pound rose .4% to 1.6132. The Australian Dollar advanced .5% to 1.0380, and the Canadian Dollar edged up .3% to .9924. The Yen inched up .1% to 81.53.

Economic Outlook

No major economic reports are scheduled for Monday. Earnings are due from Checkpoint, ConocoPhillips, DR Horton, Netflix, SunTrust Banks, Texas Instruments, and Xerox.