# Global equity markets started the evening in good mettle, the EuroStoxx600 ending up 0.84% as progress reports seeped out of the EU Finance Minister’s meeting regarding Spanish bank bailout and deficit reduction criteria. However, the better tone could not hold as the German Constitutional Court, who are to rule on the legitimacy of the ESM and the fiscal compact for Germans, said the decision may take 3 months. Markets hate uncertainty and as such the ‘big board’, the S&P500 fell, closing down 0.81%. (The S&P had been up 0.7% earlier so the weak close has traced out a ‘bearish engulfing day’ with argues for further losses ahead).
# UK May Industrial Production surprised positively, blowing away market expectations. Against forecasts of a -0.2% outcome the data was a welcome surprise coming in at a stunning +1.0%.
# In a similar vein, Italian Industrial Production for May also surprised positively coming in at +0.8% against -0.6% expected.
# The UK June NIESR GDP Estimate showed expectations of a contraction of -0.2%, previously they had been looking for + 0.1%. In the same breath as the negative GDP forecast, BoE’s King said “ Economy does not show signs of impending recovery; Worried about export outlook”.
# Fed’s Bullard said “no QE3 unless economy slows to recession” (this is a very big statement given that we have the FOMC minutes looming large tonight. If the minutes back him up then the bearish signals on the charts will come to fruition).
# Gold and Silver recorded ‘bearish engulfing days’ in sympathy with U.S. equities. After an early US$13 rally to US$1601 gold fell abruptly to end the session at US$1566.00.
# RBA Deputy Gov Lowe speaks
# Westpac Australian Consumer Sentiment
# Australian Home Loans
# U.S Trade Balance
# U.S. Fed FOMC Minutes
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