5 Big Threats That Could Torpedo This Market At Any Moment

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Great note out this evening from Citi’s Steven Englander, who takes the pulse of the market and sees that buoyancy and risk-on-ness are coming back.

The market has rallied. European credit default swap swpreads have tightened. Risk currencies are up.

But he identifies 5 warning signs that are staring the market in the face, and could derail any nascent confidence/momentum.

They are:

  • Finland and the Netherlands stymieing the bailout.
  • The list of countries looking help on containing borrowing costs growing.
  • Christine Lagarde saying she’s “not in a negotiation or renegotiation mood at all,” with respet to Greece.
  • The ECB might drop the ball.
  • A gap is growing between the data (which is bad) and markets (which are holding up).

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