EURUSD and SPX selling off on "low volume". Perhaps the Spanish lousy GDP estimates from the central bank, perhaps the growing pessimism on US earnings outlook or simply the realization that Europe still has not solved its crisis. In my view, the markets are still within the acceptable range for a range scenario. It is common for the markets to make marginal new lows or highs just to tease all the stop orders, but you people probably already knew that, right?
In addition to the bad Spanish numbers (no-one was expecting any good news for sure), the French industry's confidence estimates for October came out - and they were really bad. This makes an interesting set-up for tomorrow's European PMI's - probably the market is now expecting somewhat lower numbers than the latest consensus forecasts would suggest - a spot-on or even "worse-than expected" PMI could be deemed an euro positive. Just some rambling of mine, sorry. For a specific reason... I have an interest in tomorrow's numbers...
Previously on
MoreLiver’s:
Roundups &
Commentary
US Opening
News And Market Re-Cap – Ransquawk
/ ZH
Frontrunning – ZH
Overnight Sentiment: Crashy – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Today’s front pages – presseurop
Daily press summary – Open Europe
Cameron: Eurozone needs ‘mutualised deposit
guarantees, a common fiscal backstop and a framework for rescuing banks’;
Hague: It is not for Britain to tell eurozone countries what to do
Morning MarketBeat: Technicals Support Rally, for Now
– WSJ
Broker Note Briefing – WSJ
Canaries Banned from Coalmines (Elephants Allowed) – TF
Market Advisors
US session ahead
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
“Europhorics”, our most dangerous friends – Die
Zeit / presseurop
There are
the “Eurosceptics”, and there are “Eurohaters”. And then there are the
“Europhorics”, who are to be found among both intellectuals and politicians and
who at least as dangerous as the former. To them the EU is not a union, but a
worldview – and they are abusing it.
The eurozone needs its own budget with
significant capacity to absorb major shocks and tackle the crisis – europp
/ LSE
Herman Van
Rompuy, President of the European Council, has called for a euro-area budget,
with the ability to absorb country-specific shocks in member states at a
central level. Guntram Wolff looks at these proposals, saying that there is a
strong case for a eurozone federal budget, and a strongly defined banking
union, to be used for stabilisation policy. He suggests that the existing
European Stability Mechanism should be explored as a basis for developing the
eurozone’s fiscal capacity.
Stop this campaign
against ECB policy – Brussels
blog / FT
The European Central Bank’s recent decision to be a
lender of last resort in government bond markets is a turning point in the
governance of the eurozone. By committing itself to unlimited government bond
purchases, the ECB prevented a panic that would have pushed governments into
liquidity and solvency crises, destroying the eurozone.
A brief respite for the euro? – alphaville
/ FT
Commerzbank
is arguing that we should all forget about the eurozone crisis for a bit where
euro-dollar is concerned
Gross
domestic product fell 0.4 percent in the three months through September from
the previous quarter, matching the contraction of the second quarter, the Bank
of Spain said in an estimate in its monthly bulletin
Spanish regions
downgraded to 'junk' – euobserver
OTHER
False Dawn Or False Dusk – Macro
Man
So TMM are of the view that real money is
likely to be accumulating length into weakness - and the low volume sell off
this morning feels to us as though it is merely HF and CTA activity. Absent major macro news, TMM would argue the old adage applied
"don't sell a quiet market". Buy the dip.
Market is short-term
bullish, long term cautious – Humble
Student
IN FINNISH
Euroliittovaltio ja
suomalainen veronmaksaja – varautukaa rajuihin veronkorotuksiin ja hillittömiin
julkisten palveluiden leikkauksiin – tyhmyri
Euron itseisarvo –
Rafael Rantala
/ US Puheenvuoro