An expected EC/IMF deal for Greece by the weekend has Greek bonds rallying and is giving a lift to all the European markets. As with any bailout, the tough choices (debt restructuring) are avoided but short term pain has been alleviated. Without the outright cutting of Greek debt, Greece will take the form of a zombie country where they exist to just pay off their debt rather than to grow as a country and provide opportunity for their populace. But I digress, a European band aid on the heels of a no change FOMC statement has the futures higher. Also helping was a better than expected jobs # in Germany and higher than forecasted economic confidence figure for the Euro Zone. Chinese stocks remain an issue as they fell for the 10th day in the past 11 to the lowest level since Oct ’09. The Shanghai index is now down 12.5% ytd. In sympathy, Hong Kong closed at a 5 week low. Brazil raised interest rates by 75 bps to 9.5%, 25 bps more than expected.
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