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Market Pulse: Savage week for Euro assets, right? Not quite

Friday, May 25, 2012 - 03:59

May 25 - French bond yields hit a 22-month low as investors pump cash into assets offering a better return than Bunds.

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Another EU summit let down the -- slumped to a two year Lowell. And -- on the brink of leaving you don't. Up fifty savagely for European markets right well not quite this is today's market pulse. We'll go to -- of all the headlines and the market mic me and music this week copying fifty bleak. And it seems to be more of the same today opinion polls and be sure to file let Ponte -- party cities are opening up a four point lead. And the cracks in Spain's banking system and getting bigger. So why is that you -- up on the football and you've done. Joining me as I've looked upon correspondent will James will let's start with fronts on the ten year yield to -- -- his lowest since the it was launched Wilson decades as far as our chops show. Spent a string them yet is this -- hunt for yield all is off flight to safety. I think he's probably have a bit of both -- restored yesterday. That for about people prepare to move into longer -- German bonds because it was a great field and -- of that. A big rally in the fifty cents a so today outsourcing its its equipment -- to two minutes at the democratic. Critics have just let -- the you can. So. Yeah a bit -- a bit about things I think. Now what this fools behind this rally in response to the emphasis is -- long term money at play here on the office. I'm probably not so I think have a lot of the long term investors that we talked to. The pretty neutral on on the on the cool I'm -- that includes France Austria. And Germany. That I see this as as a fundamental shift and I think what what we actually have an amendment case a lot of short term money looking to grow a bit of extra yield. Irons technical factors McNamee isn't that big of an age groups people usual. Fronts thugs awhile back in the market didn't like it I'm very negative on it -- -- -- -- justice and that's just pushing -- right that you can't. That's science found that the street Italian yields up having. Well what the biggest folder biggest weekly fall in two months almost fifty basis points. Is this a -- -- should we be encouraged by this all out there should be be a little bit more cautious. Under police say cautious. I don't I don't think. Anyone really believes that Italian Spanish and in less risk of a Greek exit this week -- -- last week the you know your island in your intranet that things are probably was actually if anything. So again this is a factor of blood market liquidity at -- -- What you have is I think that's just one pull this week it could be sixty basis what time -- -- Get well -- you very much. Well European shares giving back some of yesterday's gains with bikes under performing the benchmark. This comes as shares in Spain's fourth largest buying buying Kia -- suspended today. An announcement is expected later than that they put define what Oscar for more than fifteen billion euros of state aid still. European financials up on one and a half percent this week the biggest rise in over two months. And the you know bouncing back out on a third of 1% today against developed spelling and the yen short covering ahead of the weekend doing the trick bail out. Both all the talk of peace exits in the you know another country in the markets light a fire seems determined to state and Portugal has no intention of leaving you told -- according to opposition leader Antonio Jose -- in an interview with Reuters. Healy the blame for Europe's troubles squarely on Germany's -- It it won't consider it would be good if mrs. Merkel did not destroy the European project. It took a long time to construct and Germany was a decisive -- trip itself. Let's phonetic joint assets eleven GMT every weekday for your daily dose of what's moving markets and what. I'm Jamie give -- this it was.

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Market Pulse: Savage week for Euro assets, right? Not quite

Friday, May 25, 2012 - 03:59