A further deterioration in the debt of Greece, Ireland and Portugal where yields are spiking again to record highs is being met with a yawn by European stock markets, most banks and the euro. The reason seems to be that markets for a while have known what the end result of this situation is, particularly for Greece and that’s a workout of its debt. Now the pressure is intensifying and a German gov’t official said it honestly that Greece “should restructure sooner than later.” Greece’s budget deficit for 2010 was reported higher than initially expected by eurostat today. The euro is up after Trichet reiterated his sole focus on containing the second round effects of higher commodity prices. Asia though traded soft overnight with the Shanghai index down for a 3rd day and the Nikkei fell after S&P put its automakers and suppliers on credit watch negative for the obvious reasons.
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