Market update- 270612

Market update- 270612

Markets were relatively serene after having mostly priced the Spanish banking downgrades yesterday, and were awaiting short term debt auctions by Spain and Italy.

·      Italy sold €2.9bn of 2 year paper at 4.7% while Spain sold 3 and 6 month paper at 2.4% (previous: 0.8%) and 3.2% (previous: 1.7%).

·      Risk markets were hit with equities erasing early gains and the Euro falling to 1.2440 from a high of 1.2530 earlier.

 
·      On the night Spanish and Italian 10yr bonds were again bashed, with yields rising 24 and 17bps each. The Spanish paper is now yielding 6.8%, that’s up over 50bps so far this week...  German, French and UK yields also rose on the night, up 4, 6 and 1.5bps respectively.

·      Overall European equities were flat to lower, the broad Euro Stoxx 600 -0.13%, Spain was the big loser, IBEX was down 1.44%.

·      In the US consumer confidence fell to its lowest since January, printing 62 (last 64.9, survey 63) but despite a knee jerk sell off in risk assets, US stocks powered back and managed to close up a healthy 0.5% on the S&P and 0.26% on the DOW.

·      Oil was up slightly at $79.48 while gold fell $12 to $1572.

·      USDMYR opened pretty much where it closed at 3.1900 and we again expect a very thin and range trading for the day with immediate range at 3.1600-3.2100