IIFT Daily Note with Peter Brown

Rosy in the garden

Posted by:  |  Time: 7:45 am  |  Topic:
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Looks like we have sorted out the US debt problem and the S&P got a 300 point bounce. Merkel has dampened down expectations for Thursday and the Euro is rallying. These moves are difficult but happen often in thin markets like July. We have to step back and think if the big picture in Europe has been resovled. No? so this is a squeez in the market which will end. Because most of the market is short, this correction could reach some high levels.

We might go higher today but expect the mood to start to change towards tomorrow. Doing nothing on the Euro debt crises endangers world markets. We might see another attack on bonds later in the week.

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