- ECB’s Nowotny: ESM could be given banking licence
- Egan-Jones cuts Italy to CCC+ from B+
- ECB’s Noyer calls for eurozone banking reforms
- Spain and France reiterate call for ECB bank supervision mechanism by year-end
- Canada June house price index +5.4% y/y vs +5.8% y/y prior
- French joblessness rises 0.8%
- Belgian consumer confidence rises to -11.3 in July from -13.2 in June
- USDA sees 2013 food inflation at 3-4%
- SNB’s Jordan: franc remains overvalued
- FT: UK could lose AAA-rating on soft GDP
- IMF official: China stimulus may be done
- Nikkei: Japan to allocate 1T yen for economic revival plan
- Spain 10-year yields down 24bps to 7.38%
- Italian 10-year yields down 15 bps to 6.44%
- Oil falls below $87 for first time since July, rebounds to $88.80
- S&P 500 flat at 1338
- AUD leads, GBP lags on soft GDP
The euro rebounded after 5 days of losses. Nowotny floated the old idea of an ESM banking licence even though most thought it was off the table. The European high of 1.2171 was never seriously challenged but a fall to 1.2113 was quickly fought off. Last 1.2156.
Cable slumped as low as 1.5458 on the horrid GDP report but managed to rebound above 1.55 in US afternoon trading. Tough to imagine that will last but the resilience is impressive.
The commodity bloc was positively bubbly, breaking to the highest levels of the week. AUD/USD at 1.0317 and USD/CAD at 1.0150.
