News Headline Summary

Following the announcement that EU's Rehn is to make a statement on Spain in two hours time, risk assets see upside as anticipation of developments on financial assistance for Spain boosts risk appetite...

Update details:

- EUR/USD has pared back earlier losses to trade high on the day by 40 pips in reaction to this headline, and Bund futures trade back below 143.00 with downside in German paper.
- DAX futures are also seeing upside with this optimism, and the Spanish 10yr yield pulling off session highs at 5.86% last.
- SP/GE 10yr yield tighter on the day by 1.07bps and IT/GE by 4.47.

- It is worth bearing in mind that yesterday there was market talk that Spain would be request aid imminently however this was disregarded with expectation of a request now at the end of this year/beginning of 2013.
- Also a financial request for aid would normally come from the PM, in this case Rajoy, as opposed to an official from the EU.

Print 13:25, 14 Nov 2012 - Market Analysis - Source: RANsquawk