New York - US and European shares were little changed and the euro eased on Friday after a strong rally in the prior session and a disappointing Italian debt auction that reflected shaky investor confidence in Europe despite a rescue deal.
US stocks spent most of the morning in negative territory boosting safe haven US Treasuries, while oil prices declined more than 1% on scepticism over the long-awaited debt deal and whether the region can contain the crippling crisis.
Italy’s 10-year borrowing costs topped 6% for the first time since the launch of the euro after a debt auction Friday, underscoring the country’s vulnerability at the centre of the debt crisis.
It was the first eurozone bond auction after policymakers struck a long-awaited agreement on Thursday to slash Greece’s debt burden and strengthen the European Financial Stability Facility (EFSF), the region’s rescue fund.
Adding to concerns, the head of Europe’s bailout fund played down hopes of a quick deal with China to throw its support behind efforts to resolve the crisis. But he said he expected Beijing to continue to buy bonds issued by the rescue fund.
“I think we have a long way to go with this (European debt) mess. I still see huge risks,” said Stanley JG Crouch, who oversees $2bn as the chief investment officer of Aegis Capital in New York.
Wall St stalls
US stocks barely budged after a powerful rally on Thursday that propelled the S&P to close above its 200-day moving average for the first time since August.
Oil, gold and copper slipped on Friday on doubts about the details of a deal to tackle Europe’s debt crisis, but most commodities were firmly on track for weekly gains.
US stocks spent most of the morning in negative territory boosting safe haven US Treasuries, while oil prices declined more than 1% on scepticism over the long-awaited debt deal and whether the region can contain the crippling crisis.
Italy’s 10-year borrowing costs topped 6% for the first time since the launch of the euro after a debt auction Friday, underscoring the country’s vulnerability at the centre of the debt crisis.
It was the first eurozone bond auction after policymakers struck a long-awaited agreement on Thursday to slash Greece’s debt burden and strengthen the European Financial Stability Facility (EFSF), the region’s rescue fund.
Adding to concerns, the head of Europe’s bailout fund played down hopes of a quick deal with China to throw its support behind efforts to resolve the crisis. But he said he expected Beijing to continue to buy bonds issued by the rescue fund.
“I think we have a long way to go with this (European debt) mess. I still see huge risks,” said Stanley JG Crouch, who oversees $2bn as the chief investment officer of Aegis Capital in New York.
Wall St stalls
US stocks barely budged after a powerful rally on Thursday that propelled the S&P to close above its 200-day moving average for the first time since August.
Oil, gold and copper slipped on Friday on doubts about the details of a deal to tackle Europe’s debt crisis, but most commodities were firmly on track for weekly gains.
Copper and US crude oil were set for their biggest weekly gains in nearly three years and eight months respectively, after European leaders hammered out a debt deal this week and data on Thursday showed the US economy was expanding.