Photo: Nick Minieri via flickr
The party continues, as US futures open up following a weekend of Spanish bailouts and not-totally-horrendous Chinese data.Dow futures are jumping about 150 points.
The euro and the Aussie dollar are both ripping.
This whole bailout-then-pop movie has been played numerous times throughout the crisis, and you probably won’t find many people who are confident that the party will continue more than a couple days (if not just a few hours).
But at the moment: good times.
For what it’s worth, the most interesting moment may come tomorrow morning when Spanish bonds start trading. Unresolved is the question of whether existing Spanish debt is now seen as subordinate to the money that Europe just lent to Spanish banks. Presumably in the risk on euphoria, Spanish yields would tighten relative to Germany. We’ll see the the extent to which that actually happens rather shortly.