Apr 10
28
Markets rocked by Greek crises
International Report
The German DAX slumped 172 points to 6,159 with the French CAC nose-diving 125 points to 3,871. Across the markets, the Dow Jones crashed 213 points to 10,991. Nasdaq toppled 51 at 2,471. The S&P 500 shed 28 points to 1,183. The Nikkei edged 0.4% lower on Tuesday as profit takers moved in and the firmer yen wiped the shine off some exporters. The Nikkei 225 index closed up 48 points at 11,213.
Yesterday, one of the world’s most respected credit rating agencies dealt a blow to financial markets, dropping Greek bonds to junk status and downgrading Portugal. The S&P moved Athens’ debt three notches lower, which made it the first Eurozone member to be rated below investment grade in the history of the single currency. Yields on Greece’s 10-year debt hovered around the 9.5% level while spreads over German bunds widened to 682 basis points. S&P also dropped Portugal’s bonds three notches down to BB+. Last night, Greece’s financial chaos threatened to spiral out of control, battering world markets as fears rose that other European nations could be pulled into the crisis. On the other hand, five-year credit default swaps on Greek government debt rose to a record high of 821 basis points from 710.3 basis points.
Due for release today is the USD FOMC Statement, USD Federal Funds Rate, NZD Official Cash Rate and the NZD RBNZ Rate Statement.
