Crouching Tiger, Hidden Dragon
All the fuss today on a news that China maybe has started to slow down the credit growth. WSJ story: Bank of China to Take Steps to Rein In Loans. We have so many alerts coming from various data points and the market reacts violently on this kind of news.
Equity was down, bonds an U.S. dollar up, commodities down, gold hammered.
On the earnings front no clear trend jet. I would say that overall earnings are coming marginally above the consensus. That could pose a problem for a market used to wide better than expected. The charts of various market segments and securities look meshed up. I can’t spot a clear market trend nor it looks like we’re going to have a reversal of some kind.
Euro weakening on Greece debt problems unavoidable default. Bund /Greek government spread has hit new wide. Bloomberg stories: Greek Bonds Slide on Concern Investors May Shun New Debt Sales; Strauss-Kahn Says Greek Deficit a ‘Problem,’ No Euro Break-up.