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Well, early this morning it looked as though Italian bond yields would be narrowing, and that we’d see an associated risk rally.
And we did, for about an hour.
But once again, things are slipping.
Yields in Italy are now higher on the day. Same with Spanish yields.
And an early rally is fading pretty fast. Italy has gone from being up 1.3% to being up just 0.5%.
US futures have given up their pre-market gains. The NASDAQ — which will be dragged down by HP — is already pointing to a red open.
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Yields in Italy are modestly lower today, and that’s setting the stage for positive action everywhere.
Italian stocks themselves are up 1.3%.
France is up 1.3% as well.
Germany is up 1%.
The fact that the ratings agencies have affirmed the US rating despite the Super-Committee failure might be helping a little bit. Obviously that’s impossible to say.
US futures are higher, though with gains under 1%
Overall, a very quiet morning.