Will Spain and Italy pay their debt in time?

Spain and Italy CDS 5 year charts

A quick easy one to round out the morning, markets are starting to fret when it comes to Spanish and Italian debt.

The chart above demonstrates the Spanish and Italian 5 year CDS from the recent bond auctions.

From Reuters:

“European stocks were lower at midday on Monday as euro zone debt concerns moved west to Spain and other peripheral countries, while last week’s strong U.S. jobs data damped expectation of further stimulus from the U.S. Federal Reserve.

The FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,077.60 points at 1135 GMT, after gaining 2.6 percent in three sessions. The blue-chip euro zone Euro STOXX 50 index was down 0.2 percent at 2,512.21, after surging 3 percent in three days.

Spanish stocks were in the spotlight, with the IBEX index down 0.5 percent, adding to recent underperformance as the spotlight switched from Greeceto Spain’s ability to deal with its debt.

Endesa was down 1.5 percent and BBVA down 1 percent.

“As the Greek solution is slowly put in place, focus will now start to shift towards the Iberian Peninsula,” Saxo Bank equity analyst Matt Bolduc said. “Spain and Italy were the biggest losers last week, which might foreshadow more things to come.”

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About Ed.

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This entry was posted in Debt and deficit in Europe, Europe debt problems, european contagion, Spanish debt, The Euro vs the world and tagged , , , , . Bookmark the permalink.

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