Spain is coming under pressure also with the budget, banking and structural reforms to be announced over the next two days, while the market still holds a slight hope that a bailout could be requested. Meanwhile, there are risks of Moody's downgrade by the end of the week. The Bank of Spain believe the Spanish GDP might have fallen significantly in Q3, based on the available data.
The Italian annualized retail sales dropped to -3.2% in September, from -0.5% in August, and declined on the month by -0.2%. Consumer confidence in France disappointed by weakening from 87 to 85, below the 86 consensus. Germany sold €3.19B of 10-year bunds out of targeted €5B and the average yield rose to 1.52% (from previous 1.42%).
The Spanish IBEX 35 and the Italian FTSE MIB are falling by -3.00% and -2.80%. The British FTSE 100, despite the better than expected CBI distributive trades, up from -3% to +6%, with consensus of +5%.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a slightly lower open ahead of the NY session as the markets await the US home sales data. WTI crude oil down by -0.85%, at 90.60. Gold is up by +0.21%, at 1764.