After Thursday’s European GDP reports revealed that the Eurozone is back in recession, stocks continued to slide across Europe.
The major European stock indices declined again on Friday as the realization that the Eurozone is now officially in recession continued to hammer stocks (NYSEARCA:VGK). Spain’s IBEX 35 Index finally declined, after somehow managing to make a 0.29 percent advance on Thursday, despite reporting its fifth consecutive quarter of economic contraction (NYSEARCA:EWP). The ongoing inability of European Union finance ministers to resolve the issue of funding Greece’s next €31.5 billion bailout tranche also undermined investor enthusiasm.
As of 10:19 EST, the Euro STOXX 50 Index declined 0.78 percent to 2,442 – staying below its 50-day moving average of 2,516 (NYSEARCA:VGK). The FTSE 100 Index dropped 0.90 percent to 5,626 (NYSEARCA:EWU). The German DAX Index sank 0.68 percent to 6,995 (NYSEARCA:EWG). France’s CAC 40 Index fell 0.64 percent to 3,360 (NYSEARCA:EWQ). Spain’s IBEX 35 Index dropped 1.13 percent to 7,608 (NYSEARCA:EWP). Italy’s FTSE MIB Index declined 1.83 percent to 14,886 (NYSEARCA:EWI).
As the chart below indicates, the Euro STOXX 50 Index is declining from a triple-top (see green bar), suggesting a further move downward. Chart courtesy of Stockcharts.com.
As of 10:25 EST, the euro declined 0.70 percent against the dollar, trading at $1.2693 (NYSEARCA:FXE).
Spain’s ten-year bond yield dipped to 5.86 percent on Friday from Thursday’s closing level of 5.89 percent. Spain’s two-year bond yield rose to 3.25 percent on Friday from Thursday’s closing level of 3.24 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield declined to 4.90 percent on Friday from Thursday’s closing level of 4.92 percent (NYSEARCA:EWI).
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