Market Buzz: Investors bearish ahead of Spain austerity announcement

Market Buzz: Investors bearish ahead of Spain austerity announcement
Russian markets are expected to trade lower Thursday as investors wait for the Spanish government to announce new austerity measures later in the day.

­Meanwhile, auditors from the Oliver Wayman consulting firm are also expected to deliver a report on Spain’s banks on Thursday.

European stock markets fell sharply on Wednesday amid escalations of anti-austerity protests in Spain and Greece. The Stoxx Europe 600 dropped 1.8%. Yields on 10-year Spanish government bonds jumped to 6.03%, while the country’s IBEX 35 sank 3.9%. Germany’s DAX 30 fell 2% due to losses in the banking sector, and the French CAC 40 fell 2.8%.

US stocks posted losses Wednesday, with investors concerned by the austerity unrest in Europe. The Dow Jones fell 0.3%, the S&P 500 shed 0.6% and the Nasdaq lost 0.8%. Crude futures also saw further losses, dropping below $90 a barrel.

Russian equities fell Wednesday amid declines in global markets and falling oil prices. The MICEX shed 2.5% and the RTS lost 3.5%.

Asian markets rose after trading lower during the early session Thursday. Hong Kong’s Hang Seng added 0.5% and China’s Shanghai Composite gained 0.3% with strong performances in the financial sector. South Korea’s Kospi advanced 0.3% and Australia’s S&P/ASX 200 added 0.2%, supported by resource trades. Japan’s Nikkei shed 0.1%, weighed down by losses in tech stocks.