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25 Mar 2013
European markets up on Cyprus, Italy pressured by politics
FXstreet.com (Barcelona) - The German DAX 30 (+1.18%), the French CAC 40 (+1.46%) and the Spanish IBEX 35 (+0.90%) are moving higher in reaction to the Eurogroup deal with Cyprus. The Italian FTSE MIB (-0.40%) is pressured by politics in Italy.
Expectations are building up in Italy as PD’s Bersani tries to form a government, the Five Star Movement loses some of their domestic support after voting for a PD candidate for President in the Senate, and Berlusconi’s PdL has reportedly been gaining in the polls were there to be early elections. “With the Easter shortened week, we would expect Bersani to announce his decisions by mid-week on forming a government, personally resigning, or capitulating to new elections, or else this may be delayed until next week”, wrote TD Securities analysts.
The Italian Trade Balance non-EU moved from €-2.282B deficit to €0.704M surplus in February. The Italian consumer confidence report shows a decline from 86 to 85.2 in March, above the 85.0 consensus.
In regard to Cyprus: “Uninsured deposits in the Bank of Cyprus will be immediately frozen until the authorities have determined the amount needed to be ’bailed in’ (specifically, via a deposit/equity swap) for the Bank’s recapitalization needs, as the €10b ‘program money’ will not be used for that purpose”, wrote TD Securities analyst analyst Alvin Pontoh.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signalling a higher opening between +0.26% and +0.53% ahead of the US Chicago Fed Activity Index and Dallas Fed manufacturing. Fed’s Bernanke will speak at 17:15 GMT.
Expectations are building up in Italy as PD’s Bersani tries to form a government, the Five Star Movement loses some of their domestic support after voting for a PD candidate for President in the Senate, and Berlusconi’s PdL has reportedly been gaining in the polls were there to be early elections. “With the Easter shortened week, we would expect Bersani to announce his decisions by mid-week on forming a government, personally resigning, or capitulating to new elections, or else this may be delayed until next week”, wrote TD Securities analysts.
The Italian Trade Balance non-EU moved from €-2.282B deficit to €0.704M surplus in February. The Italian consumer confidence report shows a decline from 86 to 85.2 in March, above the 85.0 consensus.
In regard to Cyprus: “Uninsured deposits in the Bank of Cyprus will be immediately frozen until the authorities have determined the amount needed to be ’bailed in’ (specifically, via a deposit/equity swap) for the Bank’s recapitalization needs, as the €10b ‘program money’ will not be used for that purpose”, wrote TD Securities analyst analyst Alvin Pontoh.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signalling a higher opening between +0.26% and +0.53% ahead of the US Chicago Fed Activity Index and Dallas Fed manufacturing. Fed’s Bernanke will speak at 17:15 GMT.