In Europe, Moody’s changes the outlook on 17 German banks to negative, and Egan Jones downgrades Italy to CCC-plus. German paper Sueddeutsche Zeitung, reports the EFSF would buy Spanish bonds from private banks to lower yields and the interest Spain has to pay. Citigroup have a report out this morning saying there is a 90% chance of a “Grexit” within 18 months, they previously had this as a 50-75% chance. Corporate highlights include slightly disappointing earnings from both Siemens and Royal Dutch, whilst there were better than expected results from Unilever. European equity futures are looking around 30bps better.

 

Posted by Philip Ball | Sales and Trading