Equity markets traded lower and in a tight range as indecision prevailed for yet another day given the lack of clarity on the never-ending Greek debt drama. The release of Q3 prelim GDP reports from France, Italy, Germany which came in broadly inline with expectations failed to provide the much needed confidence boost. Handelsblatt reported that Eurozone finance ministers will only attempt to close Greece's financing gap to 2014 when they meet in Brussels next Tuesday, instead of finding a solution for as long as 2020 according to a senior European source. Further to that, Germany’s Meister reiterated that Germany will not accept any Greek debt write down, which the IMF continues to push for.
In other news, reports that Spain is mulling requesting a credit line from the IMF alone as an alternative to a European bailout were denied by Spain’s Latorre says Spain. Nevertheless, SP/GE 10s seen marginally tighter, as is IT/GE 10s. In FX, JPY continued to weaken today, after Japan's opposition party leader Abe said that he wants to work with the Bank of Japan to reverse the trend of the strong JPY and revive the economy. He also called for unlimited easing until deflation is overcome even suggesting the Bank of Japan should set interest rates at zero or below zero to enhance lending. Going forward, market participants will get to digest the latest weekly jobs report, CPI and Empire Manufacturing surveys.
Print 11:49, 15 Nov 2012 - Market Analysis - Source: RANsquawk
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