Spreadex Market Update

Volatility subsides



Volatility has subsided somewhat allowing for steady gains so far in the new year mainly driven by improving US economic data.

Now that investors seem to be more confident in lending to Italy and Spain this could pave the way for further advances.

Possible setbacks at present are undoubtedly renewed prospects of a disorderly Greek default although the feeling is that Merkel and Papademos will muddle through to an outcome that doesn’t roil the markets too much, another concern is the record overnight deposits with the ECB which indicates banks are still facing difficulties.

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