Equities
Asian markets extended their declines on Wednesday in very thin trading. Korea’s Kospi skidded .9% to 1825, the Nikkei edged down .2%, and the ASX 200 dropped 1.3%. The Hang Seng closed down .6% to 18519, while the Shanghai Composite managed a slight .2% gain.
European markets fell, pressured by an ECB report showing banks were increasingly depositing cash with the central bank, rather than lend to each other. The DAX tumbled 2%, the CAC40 slid 1%, and Italy’s MIB declined .7%. The FTSE closed flat, as gains in retailers offset losses from other sectors. An auction of 6-month Italian bonds was a major success, with yields dropping to 3.25%, compared to 6.5% just one month ago.
US stocks dropped sharply, with the Nasdaq and S&P 500 both dropping 1.3%, and the Dow losing 140 points to 12151.
A sales report by Comscore showed that retail sales for the holidays rose to $35 billion, up 15% from last year.
Treasuries and Commodities
Investors poured into US treasuries, pushing 10-year notes up 24/32 to yield 1.92%. 30-year notes surged 2 8/32, to yield 2.92%.
Metals dropped sharply, led by silver’s massive 5.9% drop to 27.06. Gold tumbled 2.5% to 1556.40, and copper declined 1.6% to 3.3545.
Crude oil erased yesterday’s gains, falling 1.8% to 99.53. Gasoline lost 1.5% to 2.649, and natural gas slipped .6% to 3.13.
Currencies
The Dollar surged, while European currencies plunged. The Euro dropped 1% to 1.2935, hitting a 1-year low, the Pound fell 1.4% to 1.5448, and the Swiss Franc sank .9% to 1.0607. The Australian Dollar declined .6% to 1.0090, and the Canadian Dollar slid .5% to 1.0244. The Yen slipped fractionally to 77.92.
