Worse-than-expected US non-farm payrolls disappointed the markets last week
City Index July 11, 2011 10:04 PM
<p>Risk aversion on talks that Italy may be next on sovereign debt radar. Non-farm payrolls recap After setting the stage for a positive jobs report from […]</p>
Risk aversion on talks that Italy may be next on sovereign debt radar.
The Euro started the week lower once again, as the market looks for safe haven options with the US dollar and CHF benefiting against the single currency. There is widespread talk that Italy will be next in line to go cup in hand for a bailout package, with Italian equity markets on the slide, particularly the banking sector. Italy has the highest sovereign debt ratio relative to its GDP and is Europe’s third largest economy. ECB president Herman Van Rompuy has called an ‘emergency meeting’ this morning reflecting concerns on Italy. I can’t see too much good news from Europe this week, with the European Bank stress test results to be announced towards the end of the week.
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