Google Analytics

Friday, May 18

18th May - EU Open: Downgraded and Scared

See last night’s long US Close: Running Man for some very good articles. The JP Morgan Losses post has been updated. Follow ‘MoreLiver’ on Twitter and Facebook.

News roundup – Between The Hedges
News roundup – The Trader
Emerging London Headlines – beyondbrics / FT
The 6am Cut London – alphaville / FT
Commodity Summary – Commodity Trader
Press digests by Reuters: FT, WSJ, NYT

Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

Danske DailyDanske Bank (pdf)
Global risk sentiment continues to deteriorate. Moody’s downgrades Spanish banks; disappointing US data. EUR/USD and commodity prices drift lower 

Morning Briefing: Don’t Leave Me Now BNYMellon
Banking sector fragility is the topic de jour in
Europe right now, and another burden for beleaguered Greeks

Market PreviewSaxo Bank
European markets are likely to open lower Friday, following their Asian peers, after Fitch Ratings lowered its credit rating cut on Greece to CCC from B- and Moody's downgrade on 16 Spanish banks dented investor sentiment.

On FX and Worst FearsBruce Krasting
If (when) this happens the bank run will explode in Spain, Portugal and Ireland. The precedent will have been set with Greece. The response by authorities will be more stamped money, this time with red S’s, P’s and I’s. Basically the whole ball of wax melts down.

More ECB unconventional easing may be needed: IMFMarketWatch
cut rates to help the euro-zone economy and further unconventional policies may also be needed, an IMF spokesman said Thursday

Moody's Downgrades 16 Spanish Banks, As ExpectedZH

Spain hit by downgrades amid Greek contagion fearseuobserver

Spanish Bank Debt With ECB Up 15.7% in April; Surprise VAT Hike Coming Up; Moody's Downgrades 16 banks; Capital Flight at Bankia; Scramble for Deposits Leads to System-Wide CannibalizationMish’s
Spain goes deeper in trouble every day. No one can possibly believe "Bankia is a solvent entity". In fact, the entire Spanish banking system is clearly insolvent.

Will Greece Leave The Euro?The Big Picture
Summaries and links to recent articles

FT podcast: World Weekly with Gideon RachmanFT
With Greece in political limbo ahead of a new election in June, what is the the economic and political future of that country and the eurozone? How feasible is for Greece to leave the euro, and how are other European countries managing the increasingly anti-bailout mood in Athens?

Half Dozen Observations as Week Winds DownMarc to Market
Bad sentiment overblown, yen surged, sterling to show weakness, central banks expected, QE3 seen as a “put”, policy makers see the same as investors do.

Time to sell on strengthHumble Student
Wait for the relief rally and sell

Did Today's Stock Plunge Give The QEeen Light?ZH

Facebook Frenzy Hits Fever PitchMarketBeat / WSJ

*Fed's operation twist is distorting the treasury marketSober Look
The question now is whether these yields will reverse direction once Operation Twist ends this summer. Given the global economic backdrop, the Fed will likely not want to end the program, but the central bank will soon run out of two-year treasuries to sell. The next step will be sterilized purchases.

The market is starting to recognize the economic reality - PragCap
We believe that the numerous headwinds to economic growth are creating substantial downside risks to the economy and corporate earnings that, until  recently,  were not being appropiately discounted by an increasingly euphoric stock market. We believe that the correction is only the beginning of a major downturn.

Follow ‘MoreLiver’ on Twitter and Facebook.