Another tough day in Europe as Greece failed to form a government and called for new elections. We sense Europe has entered a terminal phase of the Euro as we now know it.
No doubt there will numerous ECB interventions, new growth and fiscal pact announcements, which will move the markets one way or another. As for us, we’re preparing for a long hot summer of discontent in the Euroland.
Today’s Key Data Points
Italy wider by 15.4 bps;
Spain wider by 10.7 bps;
Portugal wider by 29.5 bps;
Ireland wider by 36.3 bps;
Greece wider by 180 bps;
Banks mostly lower, SocGen -4.24% and UniCredit -5.24%;
The charts reflect the change in sovereign spreads vs the German Bund and bank stock performance for the first two days of this week.
(click here if charts are not observable)