Investing.com – European shares closed lower Wednesday as continued euro zone debt fears weighed ahead of the tell tale Spanish debt auction Thursday.
At the close of European trade, the EURO STOXX 50 gave back 1.66%, France's CAC 40 fell 1.59%, while Germany’s DAX dropped 1.01%. Meanwhile, in the U.K. the FTSE 100 slipped 0.38%.
Equities weakened prior to Thursday’s critical auction of two and 10-year Spanish government bonds, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
Market sentiment was boosted on Tuesday after an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Pressure on the euro continued as concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
In other news, Germany auctioned EUR4.21 billion of two-year government bonds at a record low yield of 0.14%, as investor demand for safe haven assets remained well supported.
Banco Santander led banks lower, falling on the negative Spanish loan news.
ASML Holdings, a semiconductor maker, gave back 1.6% after failing to provide future order forecasts.
Marine Harvest fell 5.7% as the salmon farmer reported falling operational earnings.
U.S. stocks are following lower with the Dow down 0.45%, the S&P 500 off by 0.37% and the Nasdaq giving back 0.38%.
Traders are anticipating U.S. initial jobless claim and existing home sales as well as the hotly anticipated Spanish bond auction on Thursday.
At the close of European trade, the EURO STOXX 50 gave back 1.66%, France's CAC 40 fell 1.59%, while Germany’s DAX dropped 1.01%. Meanwhile, in the U.K. the FTSE 100 slipped 0.38%.
Equities weakened prior to Thursday’s critical auction of two and 10-year Spanish government bonds, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
Market sentiment was boosted on Tuesday after an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Pressure on the euro continued as concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
In other news, Germany auctioned EUR4.21 billion of two-year government bonds at a record low yield of 0.14%, as investor demand for safe haven assets remained well supported.
Banco Santander led banks lower, falling on the negative Spanish loan news.
ASML Holdings, a semiconductor maker, gave back 1.6% after failing to provide future order forecasts.
Marine Harvest fell 5.7% as the salmon farmer reported falling operational earnings.
U.S. stocks are following lower with the Dow down 0.45%, the S&P 500 off by 0.37% and the Nasdaq giving back 0.38%.
Traders are anticipating U.S. initial jobless claim and existing home sales as well as the hotly anticipated Spanish bond auction on Thursday.