Friday, should be somewhat of a quiet day today in the US equity markets as investors scramble to plan their positions ahead of ECBs Greek debt swap deal over the weekend. EUR/USD seems to be trading with some conviction as it trades higher all morning around the 1.315 level. The USD is trading sideways as it awaits further news flow regarding the credit crisis and Gold stays above $1735 level. US CPI number is tomorrow morning and will be a market moving event. Will the VIX hold its key $20 level or sell off as the market takes off to the moon? Only time will tell..
Societe Generale’s CEO was optimistic regarding the banks future in 2012. He said that the LTRO program will aid European Banks if further capital injections were necessary. Societe Generale posted a quarterly profit that was way worse than analysts predicted(down 88%). Societe Generale’s CEO states, “our bank has only $3.5 Billion of exposure to PIIGS.” Might be a good time to cover your Emerging Market short positions as a lot of bad news seems to be already priced in a lot of these names.
By: Greg Zimny