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Europe stocks rebound | FTSE 100 flies
Rolls-Royce cuts dividend 39% as profit falls
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Chart shows moment BOJ drove the yen lower
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North Korea reportedly executed top general

Sweden’s negative  rate isn’t as scary as it appears

Boeing has long history of probes on accounting
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Markets »

172.07MDow Volume:
Avg Vol: 132.13M
Unchanged
147
Decliners
4753
Advancers
1612
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,660 -255 1.60%
Nasdaq
/quotes/zigman/12633936/realtime 4,267 -17 0.39%
S&P 500
/quotes/zigman/3870025/realtime 1,829 -23 1.23%
GlobalDow
/quotes/zigman/629063/realtime 2,046 -1 0.06%
Gold
/quotes/zigman/33772884/delayed 1,242 -6 0.47%
Oil
/quotes/zigman/2260836/delayed 27.45 +1.24 4.73%
FTSE 100
/quotes/zigman/3173262/delayed 5,617 +80 1.44%
DAX
/quotes/zigman/2380246/delayed 8,880 +127 1.45%
CAC 40
/quotes/zigman/3173214/delayed 3,940 +43 1.10%
FTSE MIB
/quotes/zigman/1482176/delayed 16,178 +405 2.57%
IBEX 35
/quotes/zigman/2759620/delayed 7,833 +87 1.12%
Stoxx 600
/quotes/zigman/2380150/delayed 309 +5 1.74%
Asia Dow
/quotes/zigman/6959860/realtime 2,391 -46 1.88%
Nikkei 225
/quotes/zigman/5986735/delayed 14,953 -761 4.84%
Hang Seng
/quotes/zigman/2622475/delayed 18,320 -226 1.22%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 22,986 +34 0.15%
Singapore
/quotes/zigman/1709939/delayed 2,540 +2 0.07%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 0.00 0.37%
Yen
/quotes/zigman/16008150/realtime/sampled 112.51 +0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.01 0.44%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.07%
DXY Index
/quotes/zigman/1652083/delayed 95.73 +0.13 0.13%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.83 +0.07 0.07%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.69 +0.03 1.60%
German 10y
/quotes/zigman/15866409/realtime 0.21 +0.02 7.98%
Italy 10yr
/quotes/zigman/15866497/realtime 1.67 -0.05 2.71%
Spain 10yr
/quotes/zigman/15866444/realtime 1.76 -0.02 0.85%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.38 +0.07 5.56%
Japan 10yr
/quotes/zigman/15866525/realtime 0.08 +0.06 442.45%
Crude Oil
/quotes/zigman/2260836/delayed 27 +1 4.73%
Gold
/quotes/zigman/33772884/delayed 1,242 -6 0.47%
Corn
/quotes/zigman/25518691/delayed 360 0 0.07%
DJIA F
/quotes/zigman/48241424/delayed 15,734 +122 0.78%
S&P F
/quotes/zigman/43106711/delayed 1,842 +17 0.93%
Silver
/quotes/zigman/32655632/delayed 16 0 0.37%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.91 0.91 0.90%
AAPL /quotes/zigman/68270/composite 93.70 -0.57 -0.60%
GOOG /quotes/zigman/59527964/composite 683.11 -1.01 -0.15%
BAC /quotes/zigman/190927/composite 11.16 -0.82 -6.84%
C /quotes/zigman/5065548/composite 34.98 -2.43 -6.50%
F /quotes/zigman/264304/composite 11.17 -0.17 -1.50%
T /quotes/zigman/398198/composite 36.21 -0.22 -0.60%
BP /quotes/zigman/247026/composite 27.64 -0.40 -1.43%
GE /quotes/zigman/227468/composite 27.45 -0.85 -3.00%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.6%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

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How French Bonds Could Hurt U.S. Savers

Last week Italy’s government bond yield spike looked likely to draw in peer nations.  (See “Why Italy’s Yield Spike May Spread”.)  Worryingly, France might be among them.  Its 10-year yield on Wednesday jumped to nearly two percentage points over Germany’s — the widest spread since the creation of the euro.

Getty Images

That’s a threat to U.S. savers, whether or not they have direct exposure to French bonds.

Rising yields are a sign investors are demanding more compensation for lending money to heavily indebted countries.  In doing so, of course, they make it more expensive for those nations to pay what they owe.  Italy’s 10-year bonds now yield around 7% and Spain’s, more than 6%, versus close to 2% for the U.S.

A U.S. yield spike would make it much more difficult to policy makers to reduce the deficit.  Last month alone, interest on the debt totalled more than $27 billion, or about $228 per household.  A rise in U.S. rates to French levels could add $200 a month to each household’s share of the interest bill.

That seems unlikely in the short term, however.  Money fleeing risky assets must go somewhere, and Treasury’s offer unmatched liquidity, so prices for them rose slightly Wednesday, drawing yields slightly lower.

A likelier short-term threat is that the euro will continue sliding versus the dollar.  On Wednesday, one euro bought $1.35, down from more than $1.40 in late October.  That’s good news for a New Yorker planning a trip to Barcelona, but not for the broad U.S. workforce.  If the euro continues its slide, goods produced there will become less expensive relative to American goods.  That could crimp U.S. exports, costing the country both jobs and tax revenues.

At the moment, Germany stands in the way of that happening.  Some traders refer to the euro as a Deutsche Mark in drag — a reference to the currency’s reliance on Germany’s unique economic strength.  But whereas Germany is strong enough to whether a Greek financial crisis, it’s unclear how well it would whether an Italian one, to say nothing of a crisis in Europe’s second largest economy, that of France.

The second threat to U.S. savers is a long continuation of meager returns.  Weak economic growth will leave the Federal Reserve keen to keep core U.S. interest rates low.  That’s a plus for debtors but it leaves savers with little reward.  Many will look to dividends, but the yield on the broad U.S. market is around 2%, half its historic average.  In the short term, investors tend to obsess over price changes for both stocks and bonds.  But over the long term, reinvested dividends and interest make up the bulk of returns.

The U.S. is fortunate to be on slightly better footing than Europe at the moment, but that doesn’t mean its savers should be cheered.

Comments

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Comments (5 of 5)

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    • ppt.cc/ew(L

    • The Germans need to clean house. Merkel out , along with the rest of the Dead wood.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
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New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 +0.9% /quotes/zigman/48241424/delayed DOW +0.8% /quotes/zigman/43108768/delayed NASDAQ +0.9%

need to know
Europe stocks rebound | FTSE 100 flies
Rolls-Royce cuts dividend 39% as profit falls
German GDP grows 0.3% as exports decline
Clinton, Sanders clash over costs at debate
5 charts show how markets panicked
Uber to pay riders millions to settle safety suits

CEO Jamie Dimon’s $26 million bet on J.P. Morgan
Jamie Dimon joins the ex-billionaires club

U.S., Russia agree to Syrian cease-fire

5 things to know about the Costco and AmEx breakup

Which of Europe’s Piigs might fly?
Which of Europe’s PIIGs might be set to fly?

Japan warns investors about surging yen

Chart shows moment BOJ drove the yen lower
Japan will 'act appropriately' over yen: fin. min .
Worried about the stock market? Watch yen
North Korea reportedly executed top general

Sweden’s negative  rate isn’t as scary as it appears

Boeing has long history of probes on accounting
Boeing's stock plunge of historic proportions

Have central banks lost market credibility?
Yellen in Senate: Stock swoon not Fed's  fault

Pandora’s spending plans dismay investors

Most popular new iOS emoji? Eye roll, please ...

One big Twitter question: Is the worst really over?
Buy Twitter? Only if you believe in management
Twitter message: Its critics were right

Chuck Jaffe: It’s time for these trendy mutual funds and ETFs to put up or shut up
Time for trendy ETFs, funds to put up or shut up

Jeb Bush says Trump would be worse than Obama
Obama’s U.S. is a land of economic discontent

 
Trust the BLS more than the Dow: top economist

College frosh at most liberal since Vietnam

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Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

/conga/frontpage.html 367791

Markets »

172.07MDow Volume:
Avg Vol: 132.13M
Unchanged
147
Decliners
4753
Advancers
1612
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,660 -255 1.60%
Nasdaq
/quotes/zigman/12633936/realtime 4,267 -17 0.39%
S&P 500
/quotes/zigman/3870025/realtime 1,829 -23 1.23%
GlobalDow
/quotes/zigman/629063/realtime 2,046 -1 0.06%
Gold
/quotes/zigman/33772884/delayed 1,242 -6 0.47%
Oil
/quotes/zigman/2260836/delayed 27.45 +1.24 4.73%
FTSE 100
/quotes/zigman/3173262/delayed 5,617 +80 1.44%
DAX
/quotes/zigman/2380246/delayed 8,880 +127 1.45%
CAC 40
/quotes/zigman/3173214/delayed 3,940 +43 1.10%
FTSE MIB
/quotes/zigman/1482176/delayed 16,178 +405 2.57%
IBEX 35
/quotes/zigman/2759620/delayed 7,833 +87 1.12%
Stoxx 600
/quotes/zigman/2380150/delayed 309 +5 1.74%
Asia Dow
/quotes/zigman/6959860/realtime 2,391 -46 1.88%
Nikkei 225
/quotes/zigman/5986735/delayed 14,953 -761 4.84%
Hang Seng
/quotes/zigman/2622475/delayed 18,320 -226 1.22%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 22,986 +34 0.15%
Singapore
/quotes/zigman/1709939/delayed 2,540 +2 0.07%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 0.00 0.37%
Yen
/quotes/zigman/16008150/realtime/sampled 112.51 +0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.01 0.44%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.07%
DXY Index
/quotes/zigman/1652083/delayed 95.73 +0.13 0.13%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.83 +0.07 0.07%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.69 +0.03 1.60%
German 10y
/quotes/zigman/15866409/realtime 0.21 +0.02 7.98%
Italy 10yr
/quotes/zigman/15866497/realtime 1.67 -0.05 2.71%
Spain 10yr
/quotes/zigman/15866444/realtime 1.76 -0.02 0.85%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.38 +0.07 5.56%
Japan 10yr
/quotes/zigman/15866525/realtime 0.08 +0.06 442.45%
Crude Oil
/quotes/zigman/2260836/delayed 27 +1 4.73%
Gold
/quotes/zigman/33772884/delayed 1,242 -6 0.47%
Corn
/quotes/zigman/25518691/delayed 360 0 0.07%
DJIA F
/quotes/zigman/48241424/delayed 15,734 +122 0.78%
S&P F
/quotes/zigman/43106711/delayed 1,842 +17 0.93%
Silver
/quotes/zigman/32655632/delayed 16 0 0.37%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.91 0.91 0.90%
AAPL /quotes/zigman/68270/composite 93.70 -0.57 -0.60%
GOOG /quotes/zigman/59527964/composite 683.11 -1.01 -0.15%
BAC /quotes/zigman/190927/composite 11.16 -0.82 -6.84%
C /quotes/zigman/5065548/composite 34.98 -2.43 -6.50%
F /quotes/zigman/264304/composite 11.17 -0.17 -1.50%
T /quotes/zigman/398198/composite 36.21 -0.22 -0.60%
BP /quotes/zigman/247026/composite 27.64 -0.40 -1.43%
GE /quotes/zigman/227468/composite 27.45 -0.85 -3.00%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.6%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

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