Authored by Mike Shedlock via MishTalk.com,
Italy is increasingly dependent on the ECB to hold down bond yields as foreign investors dump Italian bonds like mad.
Eurointelligence bills this as “Further Evidence of Capital Flight in Italy“.
Mark Cudmore, prolific Bloomberg markets commentator and former FX trader, asks a question that may validate all the work the ECB has put together in its "whatever it takes" effort of the past five years: is it time to stop worrying about the euro falling apart. For what it's worth, we believe the answer is a resounding no, for all the reasons anothr Bloomberg analyst, Richard Breslow, explained yesterday.
From Marc Cudmore's daily Macro View
A Macron Victory Should Seal Euro Narrative Shift: Macro View
With much of Europe and Asia, including the U.K., France, Germany and China markets closed for Labor Day, Asian stocks and the dollar rose buoyed by news that Congress had reached a deal to keep the US government funded through the end of September. S&P futures are up 4 points or 0.2%. Oil declined as rigs targeting crude in the U.S. rose for a fifteenth week and output from Libya rebounded.
Mario Draghi's job just became a little more difficult, because one day after the head of the ECB surprised markets with a more dovish statement than expected stressing risks for European inflation, on Friday morning Eurostat reported that Euro zone inflation rose by more than expected to the European Central Bank's target and core inflation increased to its highest level in four years.
European shares are lower, pressured by disappointing results by Deutsche Bank and ending a six-session gain, as Asian equities and S&P futures were little changed after a record-setting rally in world stocks which pushed the MSCI World index to over $50 trillion yesterday, fizzled after Trump released unconvincing tax cut plans prompting traders to "sell the news" while caution set in as the ECB met.