As the world waits with baited breath for the Karlsruhe Klan to decline (the positive risk-on decision), markets are leaking modestly off their overnight best levels. Barroso's State of the Union seemed to have been the trigger for some weakness as he reminded everyone just how political this problem is.
- *BARROSO CALLS FOR DECISIVE DEAL TO COMPLETE EMU
- *BARROSO SAYS FEDERATION WILL ULTIMATELY REQUIRE NEW TREATY
- *BARROSO SAYS EU MUST COMPLETE DEEP ECONOMIC, POLITICAL UNION
- *BARROSO CALLS FOR FEDERATION OF NATION STATES, NOT SUPER-STATE
EURUSD is up 10pips, S&P 500 e-mini futures are up 2.5pts, European stocks are up marginally (IBEX +0.5%, MIB +0.17%, CAC -0.15%, EuroStoxx unch), Financial and corporate credit is 2-5bps tighter (XOver -9bps at one-year tights), and Sovereign spreads unch to slightly tighter.