LONDON, March 22 (Reuters) – More dogged than complacent,
global investors appear determined to stay the course with
equities, betting on a bumpy and protracted economic healing.
The first quarter of another turbulent year comes to a close
next week with no shortage of potential prompts to cash in on
what for some was a counter-intuitive bull run in the major
stock markets to five-year highs.
CYPRUS BRINKMANSHIP/BERNANKE IN LONDON/BRICS SUMMIT/MARCH CONSUMER SENTIMENT IN EUROPE/JAPAN INFLATION-JOBS-PRODUCTION/US-UK Q4 GDP REVISIONS
Cyprus has hogged the headlines since Friday, with bank closures now extended to a full week as they try to sort out a very messy bailout - made worse by domestic policy missteps over taxing bank deposits. As with Italy’s elections, the saga certainly challenges any market assumption that the euro crisis had abated for good and it’s also loaded with a series of potential precedents – not least the biggest taboo of them all, a euro exit. This is where the politics, brinkmanship and smoke-filled-rooms come in. Yet as Cyprus is so small and its banks in such a peculiar setup – given the scale of Russian and other foreign depositors – the euro group, ECB and IMF appear determined not to be pressured into a bailout above the already gigantic 60 percent of GDP.
Nor in France… Spain/France bond sales this morn alone more than twice amount Cyprus needs to find for bailout
No sign of Cyprus contagion in that Spanish bond auction… average yields down across all maturities
LONDON, March 15 (Reuters) – Bank of England chief Mervyn
King suggested this week the “black cloud” over the economy may
be lifting, but with assets buoyant and the pound feeble, what
investors think of Britain’s growth prospects is less clear.
King surprised markets by saying on Thursday he saw
“momentum” behind a UK recovery that will emerge this year, and
that sterling was fairly valued after a recent tumble.