IIFT Daily Note with Peter Brown

The waiting game

Posted by:  |  Time: 7:30 am  |  Topic:
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It is going to be a long day, with rumours dominating. The result of todays Brussel’s meeting probably won’t surface ’till late tonight.

What outcome if any is anybodys guess. However either way we should see a big market reaction. If the market likes the news if should stay bullish for some time. Euro/USd through 1.45 etc. If the market is unimpressed it could get very serious with attacks on Italian and Spanish bond markets. No question we are on a knife edge here. My guess is they will find something that will calm the markets for a while. It will be a mechanism that allows a further bailout for Greece. Untimately this is not the solution needed and the markets will get bearish again.

Best strategy is to wait and see.

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