EconWatch.com > EU Economy To Survive, Outperform US | The Big Picture

[The Big Picture] Although European stock markets all traded off into their close, southern European sovereign debt all closed at or near their highs of the day. Coincident with the bounce in the euro, the drop in yields follow the ECB credit facility that saw less than expected borrowing, some beginning of the Q buying in response to the sharp spike in yields over the past few weeks and the belief that the market demand for budget/debt discipline is being heeded notwithstanding the short term (1-2 yrs) economic pain that may result.

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[zero hedge - on a long enough timeline, the survival rate for everyone drops to zero] Weekly Credit Summary: July 2 - Something For The Weekend | zero hedge: In the US, non-financials underperformed financials (as majors were unch to marginally tighter) as IG ExFINLs are wider by 4.6bps to 118.6bps, with 9 of the 106 names tighter. while among US Financials, the CDR Counterparty Risk Index fell 2.09bps to 158.25bps, with Finance names (worst) wider by 30.43bps to 420.21bps, Brokers (best) wider by 2.5bps to 216.17bps, and Banks wider by 2.46bps to 132.63bps.

[Scoop Business » Article] Scoop Business » While you were sleeping: Hammer drops on equities: Investors fled into the perceived safety of U.S. Treasuries, pushing two-year note yields to a record low, on the signs .“ Gold is outperforming other commodities, a sign of a move to safe havens, and base metals are down on worries over the economy.” U.S. copper futures plunged on concern about economic growth in China and fiscal problems in the euro zone.

[Bullfax.com - Market News & Analysis] Volume of Bonds Sold in Europe Drops 29% | www.bullfax.com: Bonds sold by Royal Bank of Canada and Bank of Nova Scotia outperformed the debt of lenders in other countries this month as investors sought a haven from the European sovereign-debt crisis

[finansblogg.com] finansblogg.com » Blog Archive » morning update: 2) not all the money was reallocated and we are reviewing our stance on European banks amongst other areas , where as we highlight on page 62 certain factors look more encouraging- not least the holt valuation of banks (which looks v cheap relative to that of cyclicals).

[zero hedge - on a long enough timeline, the survival rate for everyone drops to zero] Daily Credit Summary: June 29 - Equity Catch-up | zero hedge: Overnight dysphoria via a real SNAFU in Chinese LEI revisions was not helped by weak Spanish retail sales (and housing) seemingly confirming the impact of austerity already and then investors saw a huge drop in Consumer Confidence in the US which was only weaseled out of by arguing that its correlation with spending was minimal (seems like it was a big positive all the time it went up?). Deep in that data was a very interesting item, coinciding wonderfully with TSLA's IPO, of the lowest expectations of new car buying since records began (still TSLA took off after an initial stagger) - we can only imagine that Elon and his coworkers must be a little disappointed they missed out on raising more money and no wonder so many supposed world-class investors were buying the IPO with it closing at $24 from a $17 settle and $19 open - well done underwriters.

[The Irish Economy] The Irish Economy » Blog Archive » Colm Kearney on the smart economy: Just to give an example of the challenge of converting research into significant job numbers, consider one of Europe’ top universities ETH Zurich (Eidgenössische Technische Hochschule Zürich/ Swiss Federal Institute of Technology Zurich), in the 10 years to 2007, it had about 100 surviving spin-outs with less than 1,000 jobs.

[Paddy Power Trader Spread Betting Blog] The China Syndrome Has Markets Seeing Red: While in Europe, investors are growing increasingly cautious ahead of bank repayments to the ECB on Thursday, which may leave a liquidity shortfall. Over the more medium term the market is questioning whether that the severe austerity measures the G20 announced to realign budget deficits will lead to a double dip recession.

[Energy and Metal Commentaries] Gold Slips, Stocks Dump 2% on "Unprecedented Reversal" in US ...: "We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy," wrote RBS bank's chief credit analyst Andrew Roberts in a note to clients last week.

[Hurriyet Dailynews] Global markets view Turkey as investment grade - Hurriyet Daily ...: Credit default swaps insuring Turkish bonds against default for five years cost 1.84 percentage points, while contracts for Russia, whose BBB rating from Standard & Poor’s is three steps higher than Turkey’s BB, trade at 1.845 percentage points.

[Abnormal Returns Now] about 1 hour ago - Abnormal Returns Intelligent Investment Links ...: So this Kartik Athreya fellow really seems to have stepped in it. His argument that bloggers should either shut up about econom...

[AFP Blogs] AFP Blogs » Blog Archive » This Week in Corporate Finance: Investors showed their concern about the European economy as credit spreads widened the most in 10 months, CDS spreads increased, and the spread of European debt widened to a record, relative to U.S. corporate debt. As recently as February, European bonds traded tighter than U.S. bonds.

[Cara Community - Comments] Bill Cara's Blog for July 1, 2010 [See post-close report] | Cara ...: An unexpected drop in the ISM index lead to a barrage of selling as skittish investors dumped stocks, fearful world economies are headed for the dreaded “double dip” recession. As the downtrend gathered momentum volume surged suggesting disgruntled Bulls began throwing in the towel now that the S&P resides below the 1040 key support.

[Financial News] Stocks end rough quarter with more questions (AP) | Financial News: Its economy represents only a tiny part of the European Union but traders worried that bad debt would trip up the world's financial system the way it did after the collapse of Lehman Brothers in September 2008. Those fears morphed into concerns about how much countries have been spending to revive growth.

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