IIFT Daily Note with Peter Brown

European Union! you are having a laugh

Posted by:  |  Time: 8:16 am  |  Topic:
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Their backing Greece into a corner and out of the Euro. You could’nt make this stuff up. Greece is gone in my opinion, now the question is can the rest survive. Becoming unlikely I feel. Italian bond yields nearly 6.3% effectively shut out of the market. They need to borrow 400bln next year, that’s the EFSF fund gone so! This is a total and utter mess.

Trading wise the uncertainty will remain. If Greece leaves is that good for the Euro? Definately not. They will default on everything and then the speculation will be should Italy leave. The macro view is for lower stocks and higher dollar. Sell on bounces and then grab 100 points. Don’t get stuck into positions as the market will be volatile.

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