Market Buzz: Spanish debts cast gloom over markets

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Russian stocks are likely to prove sensitive to the uncertain global background, burdened by Spanish debt worries and Asia’s weak performance.

But some experts say, Russian stocks managed to overcome the downward trend and could go higher in the short term.

“A number of states in the US will approve the budget for the next year; the situation keeps the markets in suspense with indices remaining on higher levels,” says Alexander Osin, chief economist at Finam Management.

Asian shares fell Monday amid concerns over the European situation, that have been renewed with surging Spanish borrowing costs. Japan’s Nikkei Stock dropped 1.5%, South Korea’s Kospi declined 0.9%, while Australia’s S&P/ASX 200 fell 0.5%. Hong Kong’s Hang Seng lost 0.6% and the Shanghai Composite shed 0.3%.

Russian stocks traded flat on Friday with the MICEX closed 0.04% higher and the RTS up 0.46%. Shares of car makers KAMAZ (+4.88%) and Sollers (+3.55) performed well, while Sberbank was among those losing out,  dropping 3.22%.

US markets dropped on Friday, ending their worst week this year after China reported weaker than expected 8.1% GDP growth. The Dow Jones fell 1.1% and the S&P 500 shed 1.3%, while the Nasdaq Composite lost 1.5%. Shares of Google shed 4.1% amid data showing drop in ads prices, paid to Google for online promotion.

European stocks had closed with huge losses on Friday amid disappointing data on China’s GPD growth and growing worries on the Spanish fiscal situation. The Spanish IBEX 35 dropped 3.6% to a three-year low as data showed Spanish banks doubled borrowing from the European Central Bank.

The Stoxx Europe 600 dipped 1.5%, while the French CAC 40 shed 2.5% and The German DAX 30 slipped 2.4%