| Sep 2 2010, 21:28:56 GMT | Sydney: | 07:28 | Tokyo: | 06:28 | Barcelona: | 23:28 | London: | 22:28 | New York: | 17:28 | San Francisco: | 14:28 |
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* Deleveraging is the name of the game today with Europe the focal point today. EUR investments financed in JPY and USD The EUR have the borrowers rushing for the door to buy back their funding currencies. This is still a liquidating market. This kind of a rush into a currency does not happen when traders are establishing positions. It only happens when they are in a stop-loss frame of mind.
* The lack of a decision for a concrete pan-European plan to recapitalize European banks over the weekend was the trigger for the panic today. The lack of a common authotity (Treasury) in Europe is at the core of the lack of confidence today. The focus of concen has been the slide in equity prices.
* The EUR has tumbled vs. the JPY and EUR. The EUR is also easier vs. the CHF and GBP.
* The key E-Z minus U.S. 2-yr note spread was last -160 bps, +13. Prices on E-Z bonds have soared, while prices on U.S. government bonds have gained. European bourses are focal and sharply weaker.
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