Market down on news from Spain and upcoming earnings reports

NEW YORK - NOVEMBER 16:  Traders work on the f...

NEW YORK – NOVEMBER 16: (Image credit: Getty Images via @daylife)

The Dow Jones Industrial Average and S&P 500 are down slightly this morning as all eyes remained fixed on Spain. Spanish Prime Minister Mariano Rajoy stated today that a call for bailout funds is not imminent. News of the delay came after the close of European markets that had rallied all day in anticipation of an impending stimulus announcement.

No key market news has been announced in the United States today but stocks are down following news from Spain and investors’ growing concern over upcoming quarterly corporate earnings reports. The “liquidity-infused high from QE3” is wearing off and investors are beginning “to worry that corporate earnings will not only be down, but be worse than expected,” said Keith Springer, president of Springer Financial Advisors in Sacramento, California.

Gold and Silver were also down today with continued news of slowing demand in China and India. “While the market has been going up on the stimulus fever, lack of support from physical demand is putting some pressure on prices,” said Marc Ground, a commodity strategist at Standard Bank in Johannesburg. As the U.S. Gold price continues to largely track the euro, investors will await news from the eurozone for word on a Spanish assistance program.

At 1 p.m. (EDT) the APMEX Precious Metals spot prices were:

  • Gold, $1,779.80, Down $4.70.
  • Silver, $34.82, Down $0.13.
  • Platinum, $1,684.90, Up $2.10.
  • Palladium, $654.50, Up $8.00.

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Greece and Spain hurt euro, drive down metals prices

 

Precious Metals are trading lower this morning, as central bank buying finally wasn’t enough to keep prices in positive territory.  Renewed concerns out of Greece and Spain have driven the euro downwards and strengthened the dollar.  However, analysts at Commerzbank noted, “Central banks are likely to continue to buy gold for the remainder of this year, thereby stripping supply from the market and contributing to climbing gold prices.”

Protesters have taken to the streets of Greece and Spain yet again.  The fresh Greek government is currently working on a budget with the European Central Bank, International Monetary Fund, and European Commission in order to receive more bailout funds.  The problem is that the Greek people have apparently reached a breaking point on austerity measures.  Author and economist Vicky Pryce said, “They are trying to see whether they can have a stay of execution, and the protests are actually probably going to help, because it’s obvious that they can’t take any more austerity.  The cost has been great for the Greeks … There’s just no light at the end of the tunnel at present.”

Spanish Prime Minister Mariano Rajoy seems to be gambling with his country’s well-being.  The latest speculation out of Spain is that Rajoy is delaying a bailout request because he believes that issues in Italy will worsen, making the bailout terms more friendly for Spain when it does finally request a bailout.  Raphael Gallardo of Rothschild Asset Management said that Spain “would be in better company and would suffer less stigma if it was to ask for a rescue at the same time as Italy.  Italy needs further austerity efforts so those are probably more reachable with the support of the European Union and the ECB.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,747.90, Down $17.50.
  • Silver, $33.69, Down $0.27.
  • Platinum, $1,621.60, Down $11.20.
  • Palladium, $624.00, Down $16.80.

 

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