The Global Rally Loses Steam In Europe

tired tourist

Photo: NaSiUdUk on Flickr

Asian markets rallied again, with only Shanghai down for the second day. The Hang Seng was up 1.7% and the Sensex was up 1.5%.Update: European markets started sharply higher but lost gains early. Now the DAX, the Cac 40 and the FTSE MIB are  in the red. The FTSE is still up 2.3% after not trading turing yesterday’s rally.

A few things to worry about in Europe.

Spread crept higher going into a 8 billion euro Italian bond auction. The 10year bond rose from 5% at the begining of the week to 5.1% yesterday to 5.22%. The BTP/Bund spread after the auction rose above 300 basis points.

Plus traders say the ECB bought a significant amount of the Italitan 10-year, according to Reuters.

The EMU economic sentiment index fell to 98.3 versus expectations of 104.

New complications with Finland’s Greece deal.

US futures point to a negative open.

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