- Spain’s De Guindos: Rules out full-scale country bailout (whatever)
- More De Guindos
- Spanish Murcia region to request state bailout – El Pais
- Spanish 10 year govt bond trades over 7.50%
- Spanish 5 year credit default swaps up 27 bps to record high of 630 bps
- Bank of Spains’ Restoy: Euro debt crisis shows monetary union flaws
- More Restoy
- German FinMin spokeswoman: Has received no signal from IMF that it won’t take part in any further Greek aid
- German FinMin spokeswoman: Schaeuble to meet Spanish Finance Minister on Tuesday
- Italy’s main parties may agree on early vote - Corriere reports
- Italy Interior Minister: No risk Sicily will default or be placed under special govt administration
- Euro zone govt debt rises to 88.2% of GDP at end of Q1 2012 – Eurostat
- Bundesbank: German economy probably grew moderately in Spring 2012
- Japanese Vice FinMion Igarashi: Japan will act on abrupt currency moves
- Japanese FinMin Azumi: No change in stance to take action on abrupt fx move (is there an echo in here, or what?)
- Japan MOF senior official: Will not exclude any options when responding to excessive fx moves - Jiji
- Blaming the Spanish victim as Europe spirals into summer - AEP at The Telegraph
Everyone’s worried about everything right now. The list is just too long to mention in detail, but worries surrounding Spain and Italy come pretty close to the top. Personally think people have stopped worrying about Greece, regarding it pretty much as a lost cause.
European stocks off sharply (eurostoxx off -2.15% at writing, Spains’ IBEX 35 off -4.0%, Italy’s FTSE MIB off -4.4%), euro zone periphery govt bond yields have sky-rocketed, NYM light crude off close to three bucks, gold off circa 7 bucks, US treasury yields have cratered (benchmark 10 year yield off at 1.4094% from early 1.4398%, decline in 30 year even more marked at 2.4892% from 2.5321% first thing)
Funnily enough, given all the volatility elsewhere, EUR/USD is hardly changed on the day. Indeed it’s managed to eek out a 10 pip gain, presently up at 1.2125 from early 1.2115, recovering from early swoon which saw session low 1.2082 posted.
Talk of barrier option interest now lined up at 1.2075, 1.2050 and ofcourse the hugely pschological 1.2000. Sell orders seen clustered up at 1.2140/50, buy stops gathering around 1.2160.
USD/JPY at 78.17 and EUR/JPY at 94.75 are effectively unchanged on the morning, recovering from session lows of 77.95 and 94.22 respectively. I know the market tends to take official Japanese rhetoric lightly, but think the comments from the senior MOF official (see above|) did give the yen bulls a little pause for thought.
Cable down marginally at 1.5538 from early 1.5570, reflecting the general risk off backdrop. EUR/GBP up at .7800 from early .7777.
