IIFT Daily Note with Peter Brown

FOMC Neutral, Cyprus rumbles on.

Posted by:  |  Time: 7:55 am  |  Topic:
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Nothing stark from Bernanke last night. Asset purchases continue and no end in sight. This will keep the S&P supported. Now the main issues focus on the debt talks. These are set to run for some time and the market is flatlining while they dominate. Overall the market is very solid and I see little risk to the downside in the short term. We may not make much progress over the next few weeks but any slide seems a buy. Looks like the strategy for the year!

On europe the market is awaiting events in Cyprus (or Russia) The fact that they are in Russia for a bailout and not the Troika is disturbing.This could lead to them leaving the Euro which the market is not taking seriously enough. We just have to wait and see but I will be selling any rally in the Euro.

Todays levels are S&P 1560 1552 1547  1540 Euro 1.2980  1.2930  1.2880

IBEX only on the mood. USD/JPY is a bit confused because traders are buying JPY as a safe haven when the Cyprus deal fails. I am on the sidelines for the moment.

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