Good earnings from Allianz, ING, Maersk and DT combined with Q1 Euro Zone GDP rising a touch more than expected led by Germany has boosted European markets after some calm in Asia. CDS are also trading lower in the PIIGS countries after Spain reported more budget tightening steps with a cut in public sector wages highlighting the moves. Gilts are rallying after the BoE’s King said he was pleased with the new government’s budget plan and also after he said he won’t rule out more asset purchases (money printing) and gold is at a new record high in response. The race to the bottom in currency debasement will continue to support gold, silver and other hard assets. After a 33% surge in 3 weeks to capture the home buying tax credit, the MBA said purchases fell 9.5%. Refi’s though rose 14.8% to a 6 week high as rates fell. Last week’s selloff shook the confidence of the bulls as II said Bulls fell to 47.2 from 56 as Bears rose to 24.7 from 18.7.
Read this next.
Previous PostWhat I Do For a Living