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Weekly Eurozone Watch – ECB Cuts

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Key Data Points
German 10-year Bund 3 bps higher;
France 5 bps wider to the Bund;
Belgium 7 bps tighter;
Ireland 25 bps tighter;
Italy 27 bps tighter;
Spain 27 bps tighter;
Portugal 40 bps tighter;
Greece 165 bps tighter;

Large Eurozone banks weekly change, 0.61. to 13.45 percent;
Euro$ down  0.41 percent.

Comments

- Italy, Spain, and Ireland sovereign spreads over the Bund at lowest weekly close since beginning of the crisis;
- The European Central Bank delivered an emergency quarter-point cut in interest rates– but president, Mario Draghi,  cautioned governments in the recession-hit eurozone against “unravelling” their austerity policies.  – Heather Stewart,  Guardian;
- The European commission warned the recession will be deeper than previously feared this year, reducing its outlook for crisis-stricken Cyprus and downgrading the prospects of the biggest economies.  – Katie Allen,  Guardian;
- Final Eurozone Manufacturing PMI moved to a 4-month low of 46.7m contracting for the twenty-first successive month;
- German output contracted for the first time in 2013;
- All national PMIs signaled contraction;
- Germany’s DAX
stock exchange closed at its highest ever level.

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Eurozone recession bites deeper – economy

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