News Headline Summary

Risk averse sentiment continues to gather momentum in early trade, with Italian and Spanish equity markets underperforming

Update details:

- This underperormance by Spanish and Italian assets is evident in the fixed income market, where SP/GE 10s wider by 5 and above the 450bps mark (level at which LCH Clearnet generally begins to review bonds for margin requirements) and IT/GE 10s wider by 6bps.
- FR/GE 10s wider by 3bps at 82bps, widest since early October. Of note, earlier today Moody's said that it will communicate view on France within a few weeks.
- EUR/USD pared overnight gains and now seen flat.

Print 08:34, 09 Nov 2012 - Market Analysis - Source: RANsquawk