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.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.