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Europe Day Ahead: Spanish jitters hammer euro

Monday, April 16, 2012 - 02:59

April 16 - Spanish bond yields push back above 6% ahead of a treasury bill sale which will test market sentiment towards Madrid as Spain and Italy move back into market sights.

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Six brown is on number of the -- Spanish bond yields pushing back about 6% as investors fret over Madrid's ability. To repay its debt Spanish assets taking a pounding across the board. The -- stock index falling to its lowest in three years. And the Euro itself had might be renewed crisis of confidence single currency dipping briefly below a dollar third seed and hitting a two months left to. And so -- still coming under intense pressure from financial markets as voters take to the streets to protest against austerity measures and the economy minister. Admission in the country has probably fallen back into recession. Madrid -- test market sentiment -- auction of twelve and eighteen month T bills she was day. And a stiffer test will come on Thursday with the sale of two and ten year bonds. Or so -- to the Italian prime minister Mario -- meets the leaders of all policies which back is government. Monty wants to settle differences over his controversial labor market reforms. In the hope of kick starting growth. Inflation biggest march is set to -- prize is running well ahead of Central Bank targets in both the UK amber your resume. CPI across the single currency area has seen rising by two point 6%. While the ECB wants that to be on the 2% and annual inflation in Britain. Full cost three and a half percent one and a half percentage points above the Bank of England's official target. Could that trumped any policy timing unlikely says National Australia Bank some virus. We have underlying inflation rates of about one and a half percent in the eurozone and two and a half percent in the UK. And I think that's enough to trigger tightening because offer will win the banking system is still essentially restraining credit. -- money grace is still in negative contend the UK we're just about flat in Europe then you know can see inflationary pressures and second round inflation pressures. -- -- Japanese that he W institute publishes its April sentiment survey. And the -- sets the stage on Tuesday for a series of high level policy meetings the fund will give its verdict on the -- all of the global economy. Then leaders of the G-7 countries meet in Washington on Thursday and the G-20. On Friday. The European -- for reporting season is in full swing UK Bellwether marks and Spencer's leads a clutch of retailers giving updates the group. Is looking forward to a bomb by some us banks of the London Olympics. And queen Elizabeth's diamond jubilee will also hear from act court ban on its accuracy you know and Burberry. And our production reports from Rio Tinto and BHP bid that's on. Finally a German court may rule on a dispute between Microsoft and Motorola over a video compression. In a worst case scenario the court could ban Microsoft from selling Windows 7. -- Xbox in Japanese. That's it -- -- from market pulse on daily snapshot of what's moving in the financial markets and wind and plenty more on the inside a platform. -- the problems is Verizon's.

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Europe Day Ahead: Spanish jitters hammer euro

Monday, April 16, 2012 - 02:59