Remark by European Central Bank President Mario Draghi sent stock prices plummeting on Wednesday.
At 7:00 EST on Wednesday morning, the major European stock indices and the American futures and indexes (NYSEARCA:SPY) went crashing into the red after publication of the following remark by European Central Bank President Mario Draghi during a speech at the Business Forum in Frankfurt:
Germany has so far been largely insulated from some of the difficulties elsewhere in the euro area. But the latest data suggest that these developments are now starting to affect the German economy.
At 7:00, the December 12 Dow Jones Industrials future was at 13,180. Immediately after that point, it went into an abrupt nosedive. The major European stock indices did likewise (NYSEARCA:VGK).
Germany’s industrial production declined 1.8 percent in September according to a report released on Wednesday by Destatis. Economists had anticipated a decline of approximately 0.5 percent (NYSEARCA:EWG).
There has been a “mass resignation” at the Bank of Greece ahead of the Wednesday evening vote by the nation’s parliament to approve controversial austerity measures (NYSEARCA:GREK).
As of 11:18 EST, the Euro STOXX 50 Index sank 1.97 percent to 2,486 (NYSEARCA:VGK). The FTSE 100 Index fell 1.48 percent to 5,797 (NYSEARCA:EWU). The German DAX Index dropped 1.79 percent to 7,246 (NYSEARCA:EWG). France’s CAC 40 Index fell 1.89 percent to 3,413 (NYSEARCA:EWQ). Spain’s IBEX 35 Index took a 2.50 percent nosedive to 7,641 (NYSEARCA:EWP). Italy’s FTSE MIB Index sank 2.26 percent to 15,330 (NYSEARCA:EWI). Three Reasons to Consider Russia
As of 11:26 EST, the euro declined 0.38 percent against the dollar, trading at $1.2765 (NYSEARCA:FXE). Euro Is Breaking Support
Spain’s ten-year bond yield rose to 5.68 percent on Wednesday from Tuesday’s closing level of 5.66 percent. Spain’s two-year bond yield climbed to 3.09 percent on Wednesday from Tuesday’s closing level of 3.03 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield ticked upward to 4.94 percent on Wednesday from Tuesday’s closing level of 4.93 percent (NYSEARCA:EWI).