A rally off the lows of the day at around 6am in Europe, led by banks, is what lifted the S&P futures from its early morning selloff. May German Factory Orders unexpectedly falling by .5% was not enough to keep things down as Apr was revised higher. Evidence of the May turbulence though in Europe was seen as orders to the Eurozone fell by 3.3% while non euro orders rose by 1.8%. 3 month Euribor did rise to .80% for the 1st time since Sept ’09 as the release of the July 23rd bank stress results loom large. Portugal sold 6 mo bills at a yield 100 bps below the panic in May. ABC weekly confidence fell by 1 pt to -42 but still remains 4 pts above the 1 yr avg and has hung in ok relative to the softening economic data that has come our way over the past few weeks, especially the jobs data. The MBA said purchases fell by 2% to just shy of its lowest level since ’97 while refi’s continue to benefit more from low rates as they rose to a 14 mo high.
