financialsense.com / By Chris Ciovacco / February 4, 2013
With U.S. markets making new highs, many have put Europe on the back burner. It may be time to slide that pot forward a bit. According to the AP:
The number of people registered as unemployed in Spain is bordering on 5 million as the country remains mired in recession. Labor Ministry figures released Monday showed the registered jobless figure surged by 132,055 in January to 4.98 million. Spain is struggling to emerge from its second recession in just over three years with its economy battered by the collapse of the once-key real estate sector. The country’s unemployment rate was at 26 percent at the end of the fourth quarter, up 1 percent from the previous three-month period.
We noted cracks in the U.S. stock market on January 24 and January 31. Now, European bond markets have started to crack. Bond yields rise when the desire to sell is greater than the desire to buy. Rising yields are indicative of increasing concerns. Spanish yields have quietly been creeping up.