SPX trapped in range but EURUSD reaching higher towards the 1.30-level. The banking union plan has been completely leaked, and ze Germans will surely vote ja on the ESM and the fiscal pact - so the only open question now is the Fed...Plenty of QE already priced in, so "selling the news", especially with EURUSD could make a lot of sense.
Previously on MoreLiver’s:
Roundups and Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap –
Global Macro Trading
The Closer
– alphaville / FT
Roundup – A
View From My Screens
US Summary – ZH
Dow Closes At Highest Since 2007 As High Yield Outperforms
Tomorrow’s Tape – MarketBeat / WSJ
Dow Closes At Highest Since 2007 As High Yield Outperforms
Tomorrow’s Tape – MarketBeat / WSJ
ECB
bond buying program is a step in the right direction, nothing more
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
There’s an overwhelming consensus that predicts
the Court will affirm the bailout funds, while perhaps hoping to renegotiate
some other stipulations for additional say on future aid. But should they block
it, there could be some serious ramifications
Another Eventful Week in the Euro Area – PIIE
Progress Toward a Banking Union * The German Constitutional Court * No Stumbling Block in Dutch Elections
Why the ECB’s Latest Plan Will Fail – PragCap
This plan still fails to address the primary
issue which is the lack of a rebalancing mechanism. The austerity is the antithesis of
rebalancing. So while the solvency issue
is being addressed by bringing private bidders back to bond markets it is
almost guaranteed to be offset by the fact that these countries still aren’t
going to experience growth that makes their debts sustainable. So this crisis will flare up again at some
point if a permanent fix isn’t implemented.
This latest “fix” buys them some time, but is really nothing more than a
kick of the can.
Volatility and the OMT – alphaville
/ FT
Will the
ECB support price levels from the LTRO? Also, Draghi said volatility is one
factor they watch
Spanish home prices fell 11.6% YoY – ZH
now back to 2003 levels...
No wriggling out of trouble – Free
exchange / The Economist
The president of the EEA, Jordi Gali, used his
presidential address to discuss the merits of “wage flexibility” over the
business cycle. The implications of his presentation for Europe are worrying, to say the least.
Stability guardians and crisis managers:
central banking in times of crisis and beyond – ECB
Speech Jörg
Asmussen
Different
story for surplus and deficit countries. Which one is wrong, or both?
Today the Portuguese government will receive
the details of the latest troika (IMF,ECB,European Commission) or men in black
review of their economy. There is little or no danger of them concluding that Portugal is not doing her best to hit the fiscal targets given to her as in Portugal there has been virtually no dissent.
The 'forgotten man' of the euro crisis catches
a break... – Open
Europe
Troika has decided to give Portugal one extra year to make the budget cuts agreed under its bailout
programme.
The program remains broadly on track…But
reaching the new deficit targets will require additional consolidation efforts.
USA
Reviewing QE(s) and Operation Twist – The
Big Picture
QE Timeline Update – Calculated
Risk
QE In Perspective – ZH
Charts from
Credit Suisse and Barclays
Moody’s update on US rating, threatens
downgrade – alphaville
/ FT
OTHER
Art Cashin Remembers 9/11 – ZH
IN FINNISH
Katainen Espanjassa:
Uudet tukipaketit vältettävissä – HS
Katainen Madridissa:
"EU tarvitsee tiukempaa talouskuria" - TalSa
Kataisen mukaan EU:n
hyväksymiä talouskuriin tähtääviä sääntöjä on noudatettava tiukemmin kaikissa
unionimaissa. Myös komission roolia on vahvistettava.
Katainen: Espanjan
kilpailukyvyn tukeminen tärkeää - TalSa
Katainen katsoo, että
Espanjan tulisi pyrkiä välttämään Euroopan keskuspankin EKP:n velkakirjaostojen
varaan jättäytymistä.
Saksan
valtiovarainministeri: Eurokriisi jatkuu vielä kuukausia – TalSa
Saksan
valtiovarainministerin Wolfgang Schäublen mukaan eurokriisi varjostaa
taloustilannetta. Kriisi ei hänen mukaansa ole ohi, vaan jatkuu vielä
kuukausia.