The major US equity indices are firmly down heading into the afternoon session, all ten sectors in the red with Oil & Gas and the Financial sectors the worst performing sectors, down 2.47% and 2.32% respectively. This continuation of weakness follows their European counterparts, where fears are mounting that the EU summit to be held on June 28th – 29th will fail to reach a substantial resolution to the debt crisis.
Reports that German Chancellor Merkel once again dismissed Euro-bonds as a possible resolution for the region, describing them as “economically wrong and counter-productive” and putting the country at loggerheads with many of its allies, came as Spain formally announced that it would be seeking aid for its banks that could be met through temporary liquidity mechanisms, and EU President Juncker announced the conditions of the Spanish bailout will now include restructuring plans: news that weighed on the riskier assets but boosted T-notes, which have climbed throughout the day, albeit on thin volumes, to session highs of 133.19.
Print 17:12, 25 Jun 2012 - Market Analysis - Source: RANsquawk
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