Banco Espirito Santo default fears weigh on global markets

Stock futures are sharply lower amid several U.S. corporate downside pre-announcements and worries over the health of Portuguese banks; S&P and Dow -1.1%, Nasdaq -1.2%.

U.S. stocks are taking cues from the European periphery nations after Banco Espirito Santo missed a debt payment, sparking worries of a potential default by Portugal's second largest bank; the U.K.'s FTSE trades -1% with financials leading the retreat, while Germany's DAX and France's CAC each -1.8%.

In the forex market, investors are reducing their exposure to the euro while boosting the dollar and the yen.

A better than expected U.S. jobless claims report was almost unnoticed.

Potbelly -18.7% and Lumber Liquidators -21.7% premarket after both primed the market for disappointing quarterly reports.

Treasurys are rallying, with the 10-year benchmark higher by 13 ticks and its yield nearly 5 bps lower at 2.51%.

Still ahead: wholesale trade, EIA natural gas inventories.

Comments (3)
  • Patent News
    , contributor
    Comments (1475) | Send Message
    what effect on world markets can a small european bank really have? sounds ridiculous
    10 Jul 2014, 09:29 AM Reply Like
  • Alex H
    , contributor
    Comments (153) | Send Message
    The article is utterly wrong. Should be retracted. Banco Espirito Santo did not miss a debt payment. A at least 2 times removed holding company of the bank missed a debt payment. Espirito Santo Financial Group missed the debt payments. The subsidiary bank Banco Espirito Santo is slovent and in compliance with all of its debt.


    Please do some basic work before you post incorrectly.
    10 Jul 2014, 09:37 AM Reply Like
  • Tschurin
    , contributor
    Comments (381) | Send Message
    Not necessarily ridiculous...Some of the world wide financial collapse in the 1930's has been knowledgeably attributed to the financial problems of a Swedish match company.
    10 Jul 2014, 09:39 AM Reply Like
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