· Fresh out - Moody’s Places Germany, Netherlands, Luxembourg on Negative Outlook
· The theme overnight was very much a continuation of Friday’s with stocks being punished and safe haven bonds being snapped up.
· USD MYR opened higher again at 3.1750-3.1810 as markets continue to turn into risk off mode, not being able to sustain last week s slight increase in risk appetite. The 3.1400support in USD MYR is still very strong and we could see it test the high of 3.1950again this week
· We now have a list as long as your arm of Spanish regions who may try to access the bailout money put up by the Spanish Central government last week: Murcia, Catalonia,Valencia,Castilla La Mancha, Balearics, the Canary Islands and Andalucía. Valencia and Murcia confirmed their intentions to apply.
· The Spanish & Italian stock markets fell over 5% each again in early trade before short selling was banned on all stocks in Spain and 37.5% of FTSE MIB companies. Both indices rallied back on short covering over the day to close down 1.1% and 2.76% respectively.
· Angela Merkel and Wolfgang Schaeuble will both leave on vacation this week and the fact that many politicians and public servants will be holidaying over August is spooking the markets as the crisis needs fixing urgently. Euro Zone consumer confidence also printed a 3yrlow...
· European bourses all fell, Germany’s DAX fell 3.18% and the FTSE fell 2.09%in broad based selling that continued into the US session with the S&P shedding 0.89% and the DOW losing 0.79%.
· Coca Cola and McDonalds both posted disappointing earnings results and reports that despite headline earnings so far being strong the underlying sales growth figures are poor across all sectors.
· On Greece,we are unlikely to get a decision by the Troika on the disbursement of the next tranche of aid before September.Sadly for Greece they will run out of cash before then so we may see them attempt to raise money on the public markets in August.
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