Seeking Alpha
Long/short equity, registered investment advisor, portfolio strategy
Profile| Send Message|
( followers)  

Stocks are lower around the globe Friday morning, due primarily to renewed concerns about the sovereign debt situation in Europe.

Traders appear concerned about the credibility of the eurozone to contain the debt problems despite the best efforts of EU officials to play down what appears to be a deepening crisis. The euro is coming under selling pressure as traders fret about the possibility of sovereign defaults and damages to banks around the globe holding European debt.

Below is a summary of headlines that have been impacting trading this Friday morning:

  • 2:01 am ET – EU Pressures Portugal to seek aid in order to save Spain – FTD. The FTD reports that the EU is putting pressure on Portugal to apply for EU/IMF aid in order to prevent the collapse of Spain.
  • 2:42 am ET – Spain is not pressuring Portugal to seek assistance – Reuters Citing Spanish government sources Reuters reports that Spain is not putting pressure on Portugal to seek aid.
  • 3:18 am ET – Portugal government denies report of bailout – Reuters
  • 4:57 am ET – Ireland said to default as early as Monday – Irish Times The report suggests that the EU/IMF is pushing to make bondholders share the burden of the bailout packages. Sources say a deal is likely to be announced on Sunday.

In addition, the Portuguese parliament is due to approve an austerity package today and markets in Hungary have fallen over -3.5% on budget concerns.

At this time France’s CAC 40 is down -1.63%, the German DAX is off -1.26%, and London’s FTSE 100 is losing -1.43%.

Remember also that US Stock Markets close early today with the NYSE session ending at 1:00 pm eastern time.

Disclosure: No positions

Source: As the World Turns: An Update on the Sovereign Debt Crisis