 Italy is the center of focus in a rather quiet day. The highly anticipated response to EU on its budget is delivered. And there is little surprise that Italy insists on sticking with it's budget deficit target of 2019. Euro's rally attempt falters after that and turned mixed. Nonetheless, sterling is even weaker as Brexit uncertainty is neverending even though 95% of the withdrawal agreement is done. New Zealand and Australian Dollar continue to decouple from Chinese stock, which staged a strong rally today, and are trading as the next weakest. On other hand, Canadian Dollar, Dollar and Swiss Franc are the stronger ones today so far. In other markets, Italian 10 year yield hit as low as 3.318 earlier today but it's now back at 3.474, down -1.08. The decline is more of a response to Moody's downgrade of Italy with stable outlook on Friday. German 10 year yield is down -0.20 at 0.443. German-Italian spread is now at 303, still an alarming level. European stocks are firm, though, with FTSE up 0.82%, DAX up 0.53% and CAC up 0.27% at the time of writing. Another major development today and the strong rally in Chinese stocks. Shanghai SSE closed up 4.09% at 2654.88. The two day strong rebound should confirm medium term bottoming at 2449.19 after climax selling on Friday. There is prospect of breaking through 2700 psychological level in near term. Other Asian markets followed higher, with Hong Kong HSI up 2.32%, Nikkei up 0.37% and Singapore Strait Times up 0.51%. |
No comments:
Post a Comment