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Market Pulse: Europe gets that sinking feeling

Thursday, April 05, 2012 - 03:34

April 5 - Euro zone risk assets slide as data comes in weak and yesterday's Spanish bond auction reminds investors that the debt crisis may be far from over.

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-- -- that sinking feeling again risk assets slide as we de sac and yesterday's -- endorsements brain reminds investors. The debt crisis may be far from over this is today's market pulse. I look at it's not today's key move this tells the story of the Euro hitting three week lows against the dollar us debt concerns mount. Euro Swiss even deeper in the doldrums. A seven month letters stocks coming off for a third day with a threat to Europe for us. Now down about 4% since -- -- morning and there's no relief for peripheral that Spanish benchmark yields pushing have a places in the 6% -- That raises the question of course of whether. ECB's cheap loans to banks thought -- lutherans mormons get set for Lloyd senior economist David Page. David today's industrial output data from the UK Germany and founding got some positive numbers earlier and earlier in the week. What what is that you'll picture of Europe's economy right now. Why is different across the region was surprised by AM to consider -- hole in the German numbers we think the general industrial sectors actually holding up relatively well. There's been a similar authorities thank you key manufacturing numbers in the sign most of it wonder if there's -- -- -- -- coming through because of the league yet. But -- -- thing the outlook for the European economy is always one of the ferries like each price. Best and I think markets that there is something that could be a little less than not across the region. You know what we've got a few days off now for the for the Easter break. Are you worried about what's gonna happen when we come back. That things seem to be unraveling the market's gonna have had a little bit of time intensified -- best. And come back with a vengeance. Yeah I think -- was gonna help us as we come back is the fact that actually economic pastries looking up other areas of the globe -- wait for the US numbers which I hope we can show and continued and sustained recovery coming through that. We mostly gone out for the Chinese numbers and I think if markets out to see evidence of a soft landing in China. That also helps because that's what the half of what the year as a struggle is is a struggle for drives. If we -- -- Seacrest come back into the Euro area. They would likely see some of these deficits how he's being achieved mores like if we done is going to be very -- -- austerity is no way to achieve deficit reduction against the background of what thing drives. So I think that's the -- concerns. That let let me pin you down to finish -- -- -- On the the payroll number out tomorrow -- I'm what are your expectations federal worsened last month. About assignment there whereas against Arafat an -- 250000. We think the lesson to not take all of that continue to resilient recovery in the US listed at a very early stages. But I think was helping this isn't picked -- being commercial -- -- a law that continues to fade the US economy well there clearly downside risks. We're hopeful that the US can make continues strides in this direction what is it resilient enough they didn't carry the the global economy. Yes and -- get a negative shock I think if you DCM reawakening of the years I across this -- -- I was sort of back in 2011. Then even the US economy is gonna struggle on the left. -- -- -- -- -- The renewed worries over Euro zone debt raising the question of whether -- Barnes and back on a bull trend UBS technical analyst Richard that talks says wait for breaking. Of the march letters that 170 to gauge whether bond yields. Really can push lower our break below that level seen opening the way to test of the 138%. Retracement of launches yield rally. That is all from us for now but join us every week that it is time to take the pulse of the market I'm actual -- this -- --

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Market Pulse: Europe gets that sinking feeling

Thursday, April 05, 2012 - 03:34