Europe Lower As U.S. Markets Closed For Holiday

Stocks are lower throughout Europe while U.S. Markets are closed and German, French, Italian, and Spanish bond yields have risen since Germany’s dismal bond auction on Wednesday indicate a spreading of the debt crisis to even the larger economies of Europe. Merkel is moving further and further from ECB bond issuance to prop up the weaker Euro members and Fitch downgraded Portugal to BB- from BBB-.  On Wednesday came word that Fitch even gave a “warning of a warning” to France over it’s AAA rating on Wednesday due to it’s increased obligations in bailouts including a Dexia liquidity use apparently without the help of Belgium.

Fortunately, a late-afternoon concession came when Sarkozy and Merkel agreed to stop bantering in public over the role of the banks during the crisis.

German stocks are lower with the DAX Down 0.4% in Frankfurt and the CAC was down only 0.15% in Paris.  The FTSE in London was trading lower by 0.5% in late day trading.  

Jon C. Ogg