Thank goodness, European markets are closed. The FTSE 100 fell 115 points, or 2.3%, to 4,954. Germany’s Dax fell 128 points, or 2.2%, to close at 5,678.
With the closing of European action, and better-than-expected consumer confidence data this morning, the Dow Industrials have pared losses, falling now just 142 points to 9,924.
Though there’s a host of woes on offer, if you like:
North Korea declared today it will sever all communication and relations with South Korea, the Associated Press’s Hyung-Jin Kim reports, after the south blamed North Korea for sinking one of its warships back in March. South Korea responded by restarting “psychological warfare operations, writes Kim.
The Financial Times’s Alphaville blog notes rumors that the European Central Bank may consider cutting refinancing rates by as much as 50 basis points because European banks are not taking advantage of the U.S.’s extension of swap lines, which were supposed to ease credit concerns. A cut by the ECB would make dollar funding cheaper, writes Alpha.
And The Journal’s Deal Journal blog notes that markets for leveraged loans that fund buyouts have seen three weeks of price declines, the first time since 2008. Prices on European “secondaries” loans has fallen to almost 95% of face value from 97% three weeks ago. High-yield debt issuance continues to slow, too, with only $5.8 billion new issues in the U.S. this month, according to S&P, down from $10 billion a year ago.
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