The yield on French 10-years notes went down to 3.11% and the Spanish dived to 5.29% signaling greater confidence among investors. By comparison, the U.S. 10-year note yielded 2.10%, Japan’s 1.07% and the German 2.18%. Yields are inversely proportional to price.
Banks loses in the U.S. damped any positive reaction to a favorable manufacturing report. Manufacturing is up as companies replace inventory.
New jobless claims went up to 402,000 last week. The dollar strengthened which is not a good thing for U.S. exports.
Massachusetts sued five lenders including JPMorgan Chase & Co. and Bank of America Corp., claiming deceptive foreclosure practices.
A contraction in China’s manufacturing could be caused by Europe’s situation.