Alroy Commentary – Would Euro debt crisis back soon?
It was a bad day for Portugal since 2 ministers resigned their commission. After the resignations of Finance Minister and Foreign Minister, Portuguese 10-year bond yield jumped to 7.7% on Wednesday. Usually, market will read it as a debt crisis if 10-year bond yield is higher than 7%. Is it a sign that European sovereign-debt crisis back?
In fact, even though Portuguese equity market dropped about 5% due to political instability, the impact on others countries in Euro-zone was little. Italian stocks and German index kept their movement, and the yield moves in Spain and Italy were small.
In conclude, even though there are a lot of difficulties of Euro recovery, market seem to be adapted some negative news and the negative impact will be smaller and smaller. In the future, we will keep observing Euro market, and looking for new opportunity.
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