Succinct summation of week’s events:
Positives:
1) Berlusconi goes and Italian Senate passes budget (awaits lower House)
2) EFSF sells bonds to fund Irish bailout after last week’s failure
3) ECB members stick to guns and say money printing not going to happen. They implicitly say to Italy, ‘you figure it out,’
4) Initial Jobless Claims fall to 390k, 10k less than expected and 4 week average falls to lowest since April
5) Sept Exports rise to record high but can it last?
6) MBA said refi’s rose 12.1% and purchases were up 4.8% as mortgage rates fell
7) US import prices unexpectedly fall by .6% m/o/m led by food and energy prices
8) China’s CPI moderates to five month low but remains still high at 5.5%
Negatives:
1) Italian bond yields move higher again but close well off week’s intraday highs. 3rd largest bond market in the world staring over the edge. French rising bond yields becoming big focus too
2) Will the ECB be left with no choice but to be like Ben?
3) US 10 yr and 30 yr Treasury auctions were weak, finally push back on historically low yields with inflation elevated and concerns with Super Duper Undercover Secret Committee?
4) Import prices from China rise .4% m/o/m, the most since April
5) India’s IP in Sept rise at the slowest pace in 2 yrs
6) German IP in Sept fall a greater than expected 2.7%
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