Somewhat softer sentiment
- The US, Japan and China gave a slightly disappointing flavour to the manufacturing sentiment numbers released so far. Markets are expecting unremittingly bad news from the Euro area, and a weak-but-less-weak set of numbers from the UK.
- Cyprus is reportedly trying to renegotiate the terms of its bailout with the Troika, looking for more time to meet its primary budget surplus (another year or so). The head of the Greek central bank has tried to reassure Greek bank depositors that their money is safe.
- Spain is reportedly planning to renegotiate with the EU over its targets. The official growth forecast for this year is reported to be revised to -1% (UBS -1.7%) with the deficit 6% of GDP (in line with UBS). Markets were never that convinced by the original forecasts.
- Australian rates were left on hold, with the effects of a stronger Australian dollar offsetting stronger domestic economic data. The UK will be offering credit data in various forms today, and the US releases factory orders numbers.
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