WHOOPS: Big Pre-Market Rally Collapses After News That The EFSF Is Delaying A Bond Sale

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Photo: Twitpic: @djwesnight

Things had been looking good this morning.In the super-early hours of the day, European markets were all up over 1%, snapping back from yesterday’s dreadful Greek-inspired slump.

Some buzz about perhaps China still being on board with helping to boost the EFSF was giving things a lift.

But the rally has collapsed.

The most recent bit of ugly headline action concerns the EFSF, the European Financial Stability Facility, which held a conference call with investors this morning. It delayed its first sale of bonds on the open market in four months, which was designed to fund the next round of bailout aid in Ireland. Here’s why.

There’s been other bad news as well this morning, most notably a slew of Eurozone PMIs, which confirm that everyone, everywhere is slowing down. Even Germany is succumbing.

We eagerly await more details on the EFSF bond delay, while the world awaits fresh labour market data from the US.

As for market action, Dow futures are currently off 20 points, not huge, but again that’s about a 110 point swing from a couple hours ago.

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