Friday, June 29, 2012

Huge Surge In Dow Futures, Euro In Blastoff Mode After Announcements From EU Summit!


From BusinessInsider: Dow futures are also up over 100 points.  What explains the spike?
At a ridiculously late hour of the night, the EU Summit appears to have resulted in modest advances towards bailouts without the need for harsh penalties.

This headline from Bloomberg, as tweeted out by Bloomberg's Michael McDonough:
*EURO LEADERS RENOUNCE SENIORITY ON SPAIN LOANS -Bloomberg

Remember, after the European bailout a few weeks ago, the hitch was the the funds (to be provided by the ESM bailout fund) would be senior to existing sovereign debt, and this was seen as a problem for Spain keeping market access. Evidently Europe has agreed to not have this new money be senior to other sovereign debt, which is a minor pressure relief.



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