IIFT Daily Note with Peter Brown

Dutch bonds and French Election

Posted by:  |  Time: 6:44 am  |  Topic:
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Two new issues to add to Euro zone jitters this morning. The likelyhood of  Hollande winning the French election and the failure of the Dutch to implement an austerity budget. Add to that the Spainish bond and bank problems and we should get a Risk Off day. A lot of calls for the ECB to lower rates and renew the LTRO programme. All this is Euro negative , yet the currency pair is showing great resilience.

I feel it is only a matter of time before Euro selling take hold. 1.3200 now seems a good top.

On the S&P 1360 is good support but watch the IBEX and MIB for direction.

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