Weekly Eurozone Watch – ECB Cuts | Global Macro Monitor

Key Data Points
German 10-year Bund 3 bps higher;
France 5 bps wider to the Bund;
Belgium 7 bps tighter;
Ireland 25 bps tighter;
Italy 27 bps tighter;
Spain 27 bps tighter;
Portugal 40 bps tighter;
Greece 165 bps tighter;

Large Eurozone banks weekly change, 0.61. to 13.45 percent;
Euro$ down 0.41 percent.

Comments

– Italy, Spain, and Ireland sovereign spreads over the Bund at lowest weekly close since beginning of the crisis;
– The European Central Bank delivered an emergency quarter-point cut in interest rates – but president, Mario Draghi, cautioned governments in the recession-hit eurozone against “unravelling” their austerity policies. – Heather Stewart, Guardian;
– The European commission warned the recession will be deeper than previously feared this year, reducing its outlook for crisis-stricken Cyprus and downgrading the prospects of the biggest economies. – Katie Allen, Guardian;
– Final Eurozone Manufacturing PMI moved to a 4-month low of 46.7m contracting for the twenty-first successive month;
– German output contracted for the first time in 2013;
– All national PMIs signaled contraction;
– Germany’s DAX stock exchange closed at its highest ever level.