Spanish Prime Minister Mariano Rajoy warned that the new year will bring more pain for Spain . In Spain, the IBEX 35 stock index took a hard fall after Prime Minister Mariano Rajoy warned of more pain for Spain in 2013, which would be “a very hard year”, “especially the first half”.  His logic was understandable:  “Never has so much been asked of a country in recession …”  El País reported Rajoy’s assertion that he has no intention of relaxing the nation’s deficit target  (NYSEARCA:EWP). In France, the National Institute of Statistics and Economic Studies (INSEE) reported that the nation’s GDP went positive during the third quarter after negative 0.1 percent in the second quarter.  Third quarter GDP expanded by 0.1 percent (NYSEARCA:EWQ). As of 11:15 EST, the Euro STOXX 50 Index sank 1.52 percent to 2,619.  The STOXX 50 is staying above its 50-day moving average of 2,553 as well as its March 19 high of 2,608 (NYSEARCA:VGK).  The FTSE 100 Index dropped 0.44 percent to 5,928 (NYSEARCA:EWU).  The German DAX Index fell 0.57 percent to 7,612 (NYSEARCA:EWG).  France’s CAC 40 Index sank 1.39 percent to 3,623 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index took a 1.96 percent nosedive to 8,118 (NYSEARCA:EWP).  Italy’s FTSE MIB Index declined 0.58 percent to 16,313 (NYSEARCA:EWI).   5 ETFs for Countries with Highest Employment Rates   As of 11:22 EST, the euro declined 0.14 percent against the dollar, trading at $1.3220 (NYSEARCA:FXE). Spain’s ten-year bond yield declined to 5.23 percent on Friday from Thursday’s closing level of 5.25 percent.  Spain’s two-year bond yield rose to 2.86 percent on Friday from Thursday’s closing level of 2.85 percent (NYSEARCA:EWP). Italy’s ten-year bond yield remained at Thursday’s closing level of 4.53 percent (NYSEARCA:EWI). On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined by 83 cents (0.75 percent) to $109.97/bbl. (NYSEARCA:BNO, NYSEARCA:USO). February Gold futures declined by $7.50 (0.45 percent) to $1,656.20 per ounce (NYSEARCA:GLD). In China, stocks advanced after the nation’s Securities Regulatory Commission announced that it will allow brokerages to issue and trade subordinated bonds in approved exchanges.  The Shanghai Composite Index jumped 1.24 percent to 2,233 (NYSEARCA:FXI).  Hong Kong’s Hang Seng Index advanced 0.21 percent to 22,666 (NYSEARCA:EWH). In Japan, the yen continued to weaken, benefiting the nation’s exporters, whose products will be more competitively priced in foreign markets (NYSEARCA:FXY).  The Nikkei 225 Stock Average jumped 0.70 percent to 10,395 (NYSEARCA:EWJ).   More Market Moving News from Japan American stock index futures were in negative territory ahead of Friday’s opening bell as time continued to run out for resolving a stalemate in the budget negotiations.  The March 13 Dow Jones Industrials future declined 0.53 percent to 12,934 as of 9:11 EST.  The March 13 S&P 500 future fell 0.61 percent to 1,402 (NYSEARCA:SPY).  The March 13 Nasdaq 100 future dropped 0.59 percent 2,606. Bottom line:  The Spanish stock market took a beating on Friday after Prime Minister Mariano Rajoy warned of more pain for Spain during early 2013 while affirming that his administration would adhere to the nation’s deficit target.  Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.