- Spain delivers austerity budget
- Fin min Guindos: budget exceeds all EU recommendations
- Catalonia approves separation referendum, Spain says it can stop it
- US initial jobless claims 359K vs 378K exp
- US Q2 final GDP 1.3% vs 1.7% prior
- August durable goods orders -13.2% compared to -5.0% exp
- Benchmark revisions add US jobs through March
- Buba’s Weidmann: Banking union should not cover existing debts
- Monti: says will not run for election
- BOE’s Tucker: funding for lending scheme no ‘silver bullet’
- US Aug pending home sales -2.6% vs +2.4% prior
- Brazil’s central bank lowers 2012 GDP forecast to 1.6% from 2.5%
- AEP: Europe’s betrayal of Spain
- Germany signs off on ESM
- Egan Jones downgrades Spain to CC from CC+
- Fed’s Bullard still sees US on track for 2% growth in 2012
- LDP way ahead in Japanese poll
- DB cuts global growth forecasts
- S&P 500 gains 1% to 1447
- NZD leads, USD lags
Non-stop news characterized the session but nothing could shake the focus from Spain’s budget. The market initially didn’t know how to react to the headlines and the euro slumped to 1.2829.
The turnaround came after Guindos’ comment, which suggested Spain is aiming for ESM access. The euro rallied 100 pips from its lows and risk trades climbed.
In the past day, both AUD and EUR have bounced from their 200-day moving averages.
