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Every silver cloud has a dark lining

  • The ECB press conference was sounding more relaxed about life, and has further dispelled the idea that there may be additional Euro area policy easing any time soon.
  • The Spanish bond auction cover led to a sharp drop in Spanish yields. However a mediocre bond result might have been better - the bond rally may breed a false sense of complacency on the part of the government about the necessity of applying for a bail out.
  • Japanese export numbers came in weaker than hoped, offsetting some of the optimism from China's better export numbers yesterday. US trade is on the agenda ahead.
  • UK industrial and manufacturing data are due, but are unlikely to show any signs of a new industrial revolution. Italy has a bond auction result, which is really only noteworthy in the context of the Spanish result.

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