Breaking 20-day moving average
Financials (XLF), Industrials (XLI), Technology (XLK)
Breaking 50-day moving average
Industrials (XLI), Technology (XLK)
Breaking 100-day moving average
Materials (XLB)
Breaking 200-day moving average
Technology (XLK)
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Key Data Points
German 10-year Bund 1 bp lower;
France 1 bp tighter to the Bund;
Belgium 2 bps tighter;
Ireland 11 bps tighter;
Italy 10 bps tighter;
Spain 6 bps tighter;
Portugal 24 bp tighter;
Greece 13 bps wider;
Large Eurozone banks weekly change, -6.14. to 4.03 percent;
Euro$ down 0.43 percent.
Comments
The German parliament has approved Cyprus’s bailout package, bringing the aid deal a step closer. 487 MPs voted in favour, with just 102 opposing the plan;
Italian MPs failed to choose a new president. Two rounds of voting failed to produce a winner, meaning a third (and probably a fourth) ballot tomorrow;
The jobless rate in the Netherlands rose to 8.1% in March, on a seasonally adjusted basis, from 7.7% in February. Twelve months ago it was 5.9%;
Germany’s top central banker warned that the task of recovering from Europe’s debt crisis could take a decade. Jens Weidmann, head of the Bundesbank, also suggested the ECB could cut interest rates to stimulate demand;
European car sales fell by over 10% last month, as the financial crisis hit the auto industry. Germany, France and Spain all saw double-digit falls;
MEPs were deeply critical of the handling of the Cyprus bailout. A session at the European Parliament saw a series of politicians blast the botched rescue package;
An opinion poll showed that Germany’s new eurosceptic party has the support of around 3% of the country’s voters – not enough to win seats in the Bundestag;
Source: Graeme Wearden, The Guardian
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Energy, which has been hit hard over the past few days, bounces with natural gas up over 4 percent. The S&P5oo broke important support at 1538 before staging a small recovery but still closed below its 50-day moving average for the first time this year.
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Brazil‘s Central Bank increased interest rates on Wednesday evening to 7.5% from 7.25%. The rate hike was not totally unexpected. Here is what Forbes had to say,
Central Bank president Alexandre Tombini hinted several times over the last week that the monetary policy committee was “attentive” to rising interest rates. The 12 month rolling IPCA-15 inflation rate is around 6.4%, on the high end of the Bank’s tolerance band…
Wednesday initiates what will likely be a new and probably small tightening cycle. The overall tone of the monetary policy committee’s statement was surprisingly dovish, said Marcelo Salomon, an economist at Barclays Capital in New York. The decision to raise rates was split, and the two dissident votes were casted for no hikes (Directors Aldo Luiz Mendes and Luiz Awazu Pereira da Silva).
The BOVESPA is already down a stunning 13 percent for the year.
We totally got it wrong buying emerging markets last week. Thank goodness for stops and that’s not ketchup on our P&L.
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Binary market action as in a daily game of red light green light. Take a look at this week’s daily action in the sectors. What will tomorrow bring?
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Enis Taner from Risk Reversal tweeted this late yesterday. Note the S&P500 closed at 1574.30. He really nailed it.
Global Macro Monitor 