Recap 6-18-12

Main Items:

  • Greek voters gave pro-austerity parties a majority in its parliament. Markets now expect a successful renegotiation of the austerity program.
  • Spanish 10y yields broke above 7%
  • On Friday the IMF warned that Ireland was at serious risk of requiring a second bailout as the country’s access to private debt markets appears in doubt later this year.
  • The head of Denmark’s central bank warned of the intense upward pressure currently being placed on the krone from investors seeking a safe haven from the eurozone debt crisis. The central bank said it has the necessary tools to keep the krone within a narrow band against the euro. It said it was prepared to move into negative interest rate territory if needed – FT
  • US NAHB index was unchanged at 29 in May vs 28 exp


  • The French Socialist party took a majority in the National Assembly

Upcoming Data:

  • Mon: NAHB Housing Market Index
  • Tues: UK CPI, German Zew, US Housing Starts, Japan Trade Balance, BoJ minutes
  • Wed: MPC Minutes, UK Claimant Count, FOMC
  • Thurs: EU PMI, UK Retail Sales, US Jobless Claims, Markit US PMI, Philly Fed, EU Consumer Confidence
  • Fri: German IFO, Canada CPI

Commentary & Links:

S&P is at long term resistance, but expectations of more QE on Wed suggests that it is unlikely to sell off much before then:

Separately, Bruce Krasting’s recent conversation with a Greek shipper is worth a read.

2 thoughts on “Recap 6-18-12

  1. If I recall correctly the cb’s jawbone proactively and print reactively. Hitting the bid here may not encourage the beard.

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