I will be back in a bit to fill in the details. Dow down 133(futures)...That's big.
Didn't sleep last night at all.
Daily US Opening News And Market Re-Cap: July 23
Submitted by Tyler Durden on 07/23/2012 - 08:06 Bond British Pound China Consumer Confidence CPI Creditors Crude default European Central Bank Eurozone Federal Reserve Greece Gross Domestic Product International Monetary Fund Investor Sentiment Iran Italy Middle East Monetary Policy Price Action recovery Sovereign Debt Unemployment United Kingdom Uranium
Risk-off trade is firmly dominating price action this morning in Europe, as weekend reports regarding Spanish regions garner focus, shaking investor sentiment towards the Mediterranean. The attitudes towards Spain are reflected in their 10yr government bond yield, printing Euro-era record highs of 7.565% earlier this morning and, interestingly, Spanish 2yr bill yields are approaching the levels seen in the bailed-out Portuguese equivalent. As such, the peripheral Spanish and Italian bourses are being heavily weighed upon, both lower by around 5% at the North American crossover.
As for the core indices, all are trading firmly lower, led downwards by financials. Investor focus this morning remains on reports from Spanish press that more regions could be queuing up to request aid from PM Rajoy’s central government. This effect has been compounded by similar reports from Italian press, raising the alarm that a number of Italian cities, notably Naples and Palermo, could be facing difficulties mounting their finances. The latest news from the periphery has seen a pick-up in volume in comparison to previous sessions, however with fewer than 250k contracts going through in the Bund, volumes do remain lighter on a year-average basis.
Elsewhere, news that the IMF are to consider ending its support for Greece, withholding the allocation of further money to the country, has brought the prospect of default to the forefront of many investors minds. Since the open, no commentary from the IMF has hit the wires, however the German finance ministry highlighted that they have received no signal from the IMF that it will not take part in any further Greek aid. As such, the results of the Troika report, due to be conducted this week, will catch focus as the week progresses.