- Spain formally requests European aid for its banks, has not asked for any specific number – Economy Ministry spokesman
- Fitch downgrades Cyprus to BB+ from BBB-, outlook negative
- Spanish 10 year govt bond yield climbs 19 bps to 6.54%
- Spanish May PPI -0.1% m/m, +3.2% y/y, up from Aprils’ -0.8%, +3.0% respectively. Y/Y read above median forecast of +2.7%
- Soros pushes EU to start joint debt fund or risk summit fiasco - Bloomberg
- Germany to confront united euro bloc at summit - Bloomberg
Hope springs a turtle. or rather it doesn’t.
Investors not terribly hopeful of meaningful progress being made at this weeks EU summit.
Risk off this morning. European stocks markedly lower (eurostoxx off -1.6%), Spanish and Italian government bond yields climbing back higher, oil and gold prices touch lower, US treasury yields lower (10 year benchmark yield down at 1.6212% from 1.6605% first thing) Yada, yada, yada, you know the gig.
EUR/USD down at session low 1.2480 from 1.2530 first thing. Decent Swiss name selling seen early. Sell stops tripped through 1.2500. ACB buying has been noted around lows helping slow, but not reverse, decline.
More sell stops seen through 1.2470.
USD/JPY down at 79.88 from early 80.20, having been as low as 79.77 after sell stops tripped through psychological 80.00 level. Risk off backdrop and lower US treasury yields have helped drive yen demand.
EUR/JPY down at 99.70 from early 100.50, the sell-off accelerating when sell stops tripped through psychological 100 level.
Cable down marginally at 1.5555 from early 1.5585.