The
Eurogroup meeting went, and it seems nothing much has changed. I collected the
articles of the main news sources below. Germany’s top court will make a temporary
decision on ESM today. See last night's US Close: QE Pasa? for article links.
News
roundup – Between
The Hedges
The 6am Cut
London – alphaville
/ FT
Emerging
Markets Headlines – beyondbrics
/ FT
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
AUD took a hit in the Asian session, falling across the board and losing
some 30 points versus the US dollar, after the China trade report for June
showed that port growth had slowed. Exports and the trade balance beat
forecasts.
European markets are likely to open mostly
higher Tuesday. Markets await the UK, Italian and French
industrial production data due today. Late Monday, the EU ministers agreed to
an aid plan for Spain and an extension to deficit reduction deadline.
Danske Daily – Danske Bank (pdf)
Focus today will likely be on market reception
of the Eurogroup meeting which is followed by ECOFIN later today; with some
important details regarding bank recapitalisation still blowing in the wind,
markets are unlikely to take a lot of comfort from Juncker’s statements.
Developments in Spanish rates could take centre stage again as the 10Y segment
hovers around the psychologically important 7%. Also, the German constitutional
court is due to discuss whether signing the new ESM and the fiscal pact for Europe is consistent with national law.
Morning
Briefing: Safe European Home? – BNY
Mellon
Was a turning point of sorts reached for GBP on May 14th?
EURO CRISIS: EUROGROUP
Eurogroup statement – alphaville
/ FT
EU gives Spain more time on deficit, sets bank
aid – Reuters
Euro zone ministers agreed early on Tuesday to
grant Spain an extra year until 2014 to reach its deficit reduction targets in
exchange for further budget savings and set the parameters of an aid package
for Madrid's ailing banks.
Euro zone finance ministers' meeting – Reuters
Excerpts from the Eurogroup statement and
comments by ministers and officials after the talks:
Franco-German Amity Needed for Strengthened
Euro, Leaders Say –
BB
Officials Spar Over Who Will Guarantee Bank
Losses – WSJ
EU banks' stress-test capital shortfall largely
raised: document – Reuters
A capital shortfall of 114.7 billion euros
($141 billion)identified in European Union bank stress tests has been largely
raised from private and public sources, according to a document prepared for EU
finance ministers.
Eurozone ministers agree 30bn euros for Spanish
banks – BBC