The calm after the storm? Not for long

While markets are attempting to get back to full capacity after the worst of hurricane Sandy has been seen off, the markets are revving up their engines refreshed after two days of relative inaction.

This morning saw a raft of not so elegant data from the Eurozone where unemployment hit the highest peak seen at 11.6%, German retail sales seen better than last month but quite a bit worse from this time last year and French consumers spent less than expected over the last month also. Canadian GDP was small worse than expected as well which took market by surprise a bit but have dealt with it in their stride so far

Tie in with this some not so great guidance on 2013 production from BG group (-20%) and natural provider in the UK and once the great white hope in this sector and it has made for quite a ride already. Germany managed to sell some 30 year bonds with decent demand for them which is never a good sign for risk assets. The US open soon (14.30) should see some tumultuous activity as well as price discovery goes into full effect after the last two days break.

Politically in the Eurozone not much to watch out for other than constantly revised targets for Greece in terms of their debt to gdp and any noise from Rajoy on whether he will or will not seek a bailout. Here is a clue- He will.

Markets are quiet for now but we have the Chicago PMI out in approx 30 mins so I expect the activity to pick up dramatically over rest of the session.

 

 

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