Friday Morning Recap: European Bank Upgrades Help Lift Markets – Morning Notes

– Mixed performance in global markets
– Shanghai saw notable weakness, closing down 1% after Credit Agricole cut its growth forecast and increased its inflation forecast
– Nikkei closed down as well, 40bps, though the index was able to bounce off their lows
– Note that after the Asian market close, Fitch revised its outlook on Japan to negative from stable
– European bourses are showing strength, particularly the Financials
– There were a several upgrades on major European banks (by SocGen and Citi) this morning, hence the strength in the bank names
– Also, EU banks may side step part of the more stringent Basel III capital requirements under drafting legislation implementing new rules, according to the FT

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