While anticipated, the news that politicians in DC decided to keep more money in the private sector over the next two years is obviously well received, especially in the midst of a still fragile economy and god knows what they would do with the money anyway. Interestingly though, the response wasn’t immediate as the S&P futures didn’t start rallying in earnest until about 2:30-3am, right as European markets were about to open. Asian markets initially opened lower but closed mostly higher. The prospect of a better US economy has copper prices at record highs and crude oil back to $90 for the 1st time since Oct ’08. The 10 yr yield is also back to 3.0%. Without support of Germany, the EU didn’t agree to enlarge the size of the EFSF and we await the Irish vote on their budget which must be passed in order for them to get EU/IMF money.
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