The majority of the stress test results have leaked and the market is breathing a sigh of relief. Some banks will need to raise some capital or shift around their capital structure, but the worst case scenario is some modest dilution for common shareholders. Two months ago everyone was convinced that the banks would be nationalized and shareholders would have been wiped out. Net/net, it’s a win for the markets.

US shares are at session highs and risk aversion falling. Commodities are firm and AUD is pips away from 0.7500 where barriers are rumored.

Sorry for slow updates; my internet connection is down and I am working off my cell phone! It is an amazing world…