Europe set for flattish start after Wall St closed sharply lower as initial excitement re Spanish bailout worse off and focus returned to Greek elections this weekend. S&P say Spain’s funding request has no immediate effect on its ratings on the country. IMF says Yen is overvalued and BoJ should add stimulus. Macro eyes on UK April industrial output figs and OPEC Jun oil market report.
(from LCM NY) Stocks briefly saw green to start the session but quickly surrendered those gains and closed out the day lower. The absolute declines Mon don’t accurately reveal the extent of the weakness – the SP futures hit an overnight high of ~1342 before finishing under 1302 (a ~40 pt/~3% swing). Flows were relatively quiet all session, even when the weakness
picked up into the afternoon. Volumes were on the muted side (they picked up a touch in the final hours but not by much).
The big themes for Mon were the Spanish bank deal (the EU100B helped provide an early lift but the details, or lack thereof, underwhelmed), the implications of Spain’s bank aid for Greece (was Syriza’s hand strengthened?), and AAPL (the WWDC was exactly inline w/the latest press reports and that was kind of the problem). The main driver of the poor US action though was really (as usual) Europe – European markets saw a dramatic reverse from their opening levels (in particular sovereign yields).
Many will be disappointed by the lack of news on the new iPhone 5, the Apple TV or a new iMac. New products include updated versions of the macbook Air, the Macbook Pro a new new MacBook Pro which is exactly what Macheads have been asking for! This new machine is amazing and expensive. It blends together the best screen, the top processors in thinner body. I already have too many apple products to buy this now, but it’s a killer.
And on the updated software, it’s what was expected with further integration of Twitter and Facebook (not sure about this…).
What we should remember is that Apple continues to focus on the user and not the computer capabitilities.
(FT: http://on.ft.com/MoOdEK). Barroso called for a EU banking Union as early as next year with a single cross border supervisor. The plan would also need to include a EU FDIC and a “rescue fund paid for by levies on finacnial instituions”. But the UK already says it doesn’t want to part of it (I understand…). So another day, another plan and we’ll hear more about this at the end of the month. It could be positive if it includes further fiscal integration.
BUT, for now, the most important things are the Greek Elections and some clarity on the Spanish banks bailout and the subordination. And is Italy the next one to fall???
What’s Your Workout? A Profile of Kevin Skelton, Investment Banker and Longtime Surfer – WSJ.com http://on.wsj.com/Kzcq74
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