# Global stocks rallied on expectations of further monetary policy support emanating from the FED’s FOMC meeting tomorrow (Recent speak from various FED board members has been very mixed of late so I can’t quite see that the appetite for further easing is there quite yet. I’d have thought U.S. economic performance would have to worsen considerably to force more FED action. So does the smart money know something or is this just short covering?). The EuroStoxx600 rose a healthy 1.6% whilst the S&P500 was a bit more circumspect, climbing 0.75%.
# UK Inflation unexpectedly fell to 2.8% y/y against expectations of 3.0%.
# The ZEW Indicator of Economic Sentiment for Germany sank 27.7 points to a level of minus 16.9 points in June, marking the strongest decline since October 1998. “The financial market experts’ expectations are a strong warning against a too optimistic assessment of Germany’s economic perspectives in the remainder of this year,” said ZEW President Wolfgang Franz. “The risks of a pronounced decline in economic activity in countries with close trade ties to Germany are very clear.” The assessment of the current economic situation for Germany also worsened, with the corresponding indicator dropping 10.9 points the 33.2 points mark.
# Spain sold €2.4b of 1-year notes at 5.07%, well above the 2.99% yield at the previous auction (that is a truly massive leap in borrowing costs).
# U.S. housing data was mixed, with building permits strong at 7.9%m/m vs. 1.0% expected, but housing starts were weak at -.8%m/m vs. 0.7% expected.
# The G-20 summit pledged to begin the process of integrating the European banking system, laying the groundwork to guarantee deposits throughout the region and use common funds to recapitalize failing banks.
# G 20 meeting on-going
# N.Z. Current Account
# BoE Monetary Policy Meeting Minutes
# Japan Monetary Policy Meeting Minutes
# U.K Unemployment
# FED’s FOMC statement
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