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Flash: Optimism soars despite stress in Europe – Investec

FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “The theme of optimism running through markets is quite impressive considering the backdrop of the newsfeed in recent days, particularly in Europe.”

Portuguese and Italian political instability remains, as there are concerns about Spain keeping its Investment Grade credit rating in light of Italy’s downgrade last week and there were protests in Greece as parliament debated a bill bundling together a range of economic reforms – clear signs that all is by no means fixed on the continent.

Briefly on the UK economy, there is increasing focus on the housing market recovery and one UK paper leads this morning with an article on how 85% mortgages are making a return to help buoy the housing market, with some analysts highlighting fears this will prompt another housing bubble.

Wall Street closes its second best week in 2013 by Bernanke

The US stocks market finished with gains on Friday as major indexes rallied sharply into the close. Wall Street performed its third straight week of gains and its second best week of the year. Financials led.
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Flash: Fed-based perceptions improving? – BMO Capital Markets

According to Stephen Gallo at BMO Capital Markets, “We feel the state of FX and other classes earlier today may actually reflect an overall improvement in participants’ perceptions of Fed intentions.”
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