IIFT Daily Note with Peter Brown

Stress tests

Posted by:  |  Time: 7:44 am  |  Topic:
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At 5pm today we see the results of 91 banks stress tests. Expect some to fail and some to come close. This should cause the Euro to be a little soft today. No Meeting arranged for the Euro leaders this weekend so we continue on without a resolution. This is playing with fire. Yesterday Italy paid close to 6% for money in a bond auction. It is quite unbelievable the authorities cannot see the gravity of this situation. Maybe they have decided the Euro is unfixable and are going to let in implode!!!

In the US Bernanke rowed back from his Qe3 stance, causing some dollar strenght. Without fresh news this morning it might be a quiet day.

We need a bounce on the S&P to reset shorts.

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