One Minute Macro Update
US: Futures pointing to a slight positive in the early going, following the lead set over in Europe. The data-light week will see CaseShiller home price data today as well as consumer confidence and Richmond Fed data. The dollar continues to trade weakly versus the EUR and CHF ahead of the home price data on fears of a weak print.
Europe: A disappointing French 3Q10 GDP revision of 0.3% could be indicative of the problems for the Euro region in the first two quarters of 2011. The prior estimate was 0.4% and the 2Q10 printed at 0.6%. The Euro region will need to generate growth in order to offset needed austerity measures and we believe that further disappointing growth numbers could be an additional catalyst for wider spreads in the region in the 1H11. We note that recent reports suggesting a "closer union" in the area are positive (see the WSJ this AM) as they indicate the
possibility of a fiscal union, but that such plans come with bondholder haircuts attached.
Asia: Japanese Finance Minister Noda reiterating his pledge for bold action versus a rising JPY. Asian equities selling off on speculation of further Chinese tightening.
Via Brian Yelvington of Knight Capital
- advertisements -