Investing.com - U.S. stock markets declined in thin year-end trade on Wednesday, after a successful Italian bond auction failed to ease concerns over the debt crisis in the euro zone ahead of a ten-year debt sale on Thursday.
During early U.S. trade, the Dow Jones Industrial Average fell 0.45%, the S&P 500 index slumped 0.5%, while the Nasdaq Composite index dropped 0.65%.
Trading volumes were expected to remain light following the Christmas break, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
NYSE Composite volume of 2.03 billion shares on Tuesday was the second-lowest of the year.
Shares in the financial sector led losses after the open, with Bank of America shares falling 2.4%, Citigroup shares down 1.25%, while U.S.-listed shares of Deutsche Bank dropped 2.9%.
Italy’s Treasury sold EUR9 billion of six-month bills, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November. The country also sold EUR1.73 billion of two-year zero-coupons at a 5% yield.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.86%, hovering below the 7% threshold widely seen as unsustainable in the long-term.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
Adding to concerns, data released earlier showed that the use of the European Central Bank's overnight deposit facility reached a new, all-time high of EUR452.03 billion on Tuesday.
The figure topped the previous record of EUR411.8 billion set on Tuesday. Heavy use of the deposit facility is seen as a sign of stress in the banking system, reflecting reluctance by banks to lend to each other.
Meanwhile, shares in retailers were mixed after comScore reported late on Tuesday that holiday spending rose by 15% from the same period a year ago, to over USD35 billion so far this year.
Online retail giant Amazon fell 1.5%, consumer electronics retailer Best Buy slumped 1.2%, while discount retailer Family Dollar Stores added 0.3%.
Across the Atlantic, European stock markets were mixed to lower in choppy volatile trade. The EURO STOXX 50 fell 0.65%, France’s CAC 40 edged 0.45% lower, Germany's DAX tumbled 0.95%, while London’s FTSE 100 added 0.25%.
No major U.S. economic figures are set for release Wednesday, while data set for release during Thursday’s trading session include the latest estimate of weekly jobless claims, a December purchasing-managers index for the Chicago region and November home sales.
During early U.S. trade, the Dow Jones Industrial Average fell 0.45%, the S&P 500 index slumped 0.5%, while the Nasdaq Composite index dropped 0.65%.
Trading volumes were expected to remain light following the Christmas break, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
NYSE Composite volume of 2.03 billion shares on Tuesday was the second-lowest of the year.
Shares in the financial sector led losses after the open, with Bank of America shares falling 2.4%, Citigroup shares down 1.25%, while U.S.-listed shares of Deutsche Bank dropped 2.9%.
Italy’s Treasury sold EUR9 billion of six-month bills, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November. The country also sold EUR1.73 billion of two-year zero-coupons at a 5% yield.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.86%, hovering below the 7% threshold widely seen as unsustainable in the long-term.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
Adding to concerns, data released earlier showed that the use of the European Central Bank's overnight deposit facility reached a new, all-time high of EUR452.03 billion on Tuesday.
The figure topped the previous record of EUR411.8 billion set on Tuesday. Heavy use of the deposit facility is seen as a sign of stress in the banking system, reflecting reluctance by banks to lend to each other.
Meanwhile, shares in retailers were mixed after comScore reported late on Tuesday that holiday spending rose by 15% from the same period a year ago, to over USD35 billion so far this year.
Online retail giant Amazon fell 1.5%, consumer electronics retailer Best Buy slumped 1.2%, while discount retailer Family Dollar Stores added 0.3%.
Across the Atlantic, European stock markets were mixed to lower in choppy volatile trade. The EURO STOXX 50 fell 0.65%, France’s CAC 40 edged 0.45% lower, Germany's DAX tumbled 0.95%, while London’s FTSE 100 added 0.25%.
No major U.S. economic figures are set for release Wednesday, while data set for release during Thursday’s trading session include the latest estimate of weekly jobless claims, a December purchasing-managers index for the Chicago region and November home sales.