The Spanish 2 yr yield, the focus of Mario Draghi’s new found, Federal Reserve and BoE like religion, is now down by half from where it was intraday on July 25th, now at 3.48%. The power of words is an amazing thing. The longevity of the impact though will be determined by how soon it takes for Spain to officially ask for help. In Asia, following Friday’s announcement that China was cutting stock trading transaction fees in order to generate more trading interest, today they announced that employees of publicly trading companies can choose to receive up to 30% of their compensation in stock of their employer that would be purchased by the employer in the secondary market. The Shanghai index rose another 1% partly in response.
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