As I’ve been mentioning all afternoon it’s too early to tell that this is the start of something big and we’ve been here many times before. I’ve also flogged to death my long term view that prices will catch up with the fundamentals or vice versa. I’ve always been looking for strong signs but none have come. Is this time different? Who knows just yet but I’m getting the inkling that it is. I’m not ready to nail my colours to the mast just yet but I’ve got the hammer and nail close at hand. The next few sessions are going to be telling I feel, starting tomorrow.
Update: I also feel the need to add that one reason why this may be a temporary blip is the calmness in European bonds. If there were really broad worries then we’d expect yields to go up but they haven’t. Just something that’s worth a bit of balance.
- FTSE -0.6%
- Cac -1.5%
- Dax -1.9%
- Ibex -2.1%
- FTSE Mib -1.5%
- PSI 20 -3.3%
European bonds
- Italy 2.69% -1bp
- Spain 2.50% -2bp
- Portugal 3.61% +4bp
- Germany 1.16% -1bp
