November 24, 2010
Contagion once again emerged in Europe as investors turned from Ireland's debt crisis and set their sights on Portugal and Spain.
Both Spanish and Portuguese bond prices fell sharply Tuesday, and the yields above German bunds rose to records. The euro slid below $1.34 for the first time in two months, though part of the weakness came as investors turned to the safe-haven status of the U.S. dollar after North Korean artillery attacks on South Korea.
"People that are betting on contagion are probably making the right bet here," said David Gilmore, a strategist at Foreign Exchange Analytics. "There's not really anything to stop the markets from pushing the next domino over."
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