Spain’s housing-price index in the July-to-September period fell 5.5% from a year earlier—the fastest pace of decline since 2009—and was down 1.3% from the second quarter, the public-works ministry said.
The Day the U.S. Treasury Doomed America :: The Market Oracle
Average Treasury bond maturities reached a low of 50 months in 2009. They’ve since been lengthened a bit to 62 months, but that still leaves the U.S. Treasury with a major refinancing risk. The Treasury will have to refinance some $2 trillion of outstanding debt in the next year – and that’s in addition to the $1.5 trillion of new debt it’s going to have to issue in that time.
That doesn’t leave much room to maneuver if markets get sticky. It also leaves a serious potential budget hole.
And Now The Bundestag Demands A Say | ZeroHedge
According to FAZ, the German parliament, which made it all too clear wants to be heard in all future European bailout instances courtesy of the constitutional court decision in early September, has just announced it wants to be heard, this time for real, and decide, on any EFSF expansion facility and specifically the usage of more leverage to fight already unbearable systemic leverage.
Sarkozy says euro zone talks stuck, flies to Germany | Top News | Reuters
France has argued the most effective way of leveraging the European Financial Stability Facility is to turn it into a bank which could then access funding from the ECB, but both the central bank and the German government have opposed this.
“In Germany, the coalition is divided on this issue. It is not just Angela Merkel who we need to convince,” [French President Nicolas Sarkozy] told the parliamentarians at a lunch meeting, according to Charles de Courson, one of the legislators present.
His comments fueled doubts about whether euro zone leaders will be able to agree a clear and convincing plan when they meet on Sunday.
via Sarkozy says euro zone talks stuck, flies to Germany | Top News | Reuters.
Jürgen Stark: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament
“Given that one of the root causes of the current sovereign debt
crisis are unsustainable fiscal policies, I want to emphasise that this calls for a clear strengthening of incentives for prudent and sustainable fiscal policies. The introduction of common bonds in the euro area would, however, clearly weaken such incentives without
offering a long-term crisis resolution.”
via Jürgen Stark: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament.
Forget Greece, EUROPE is Finished | ZeroHedge
Merkel and Sarkozy claim they’ve got everything under control. They’re lying. Anyone who uses common sense can tell this. The reason…
They’ve never considered the true price tag for the leveraged EFSF. I’m not talking about money, I’m talking about funding costs for France and Germany when they lose their AAA rated status as a result of backing up Greece. First off, while France and Germany are the most solvent members of the EU, they’re not exactly models of fiscal austerity. Consider that both countries officially have Debt to GDP ratios of roughly 80% (Germany’s is 78% and France’s is 84%).
China & HongKong retreat
Dow Jones Shanghai Index fell sharply on Tuesday, signaling a test of the lower trend channel. Declining 63-Day Twiggs Momentum below zero indicates a strong primary down-trend.
The Hang Seng Index retreated to 18000 Tuesday. Respect of both resistance at 19000 and the descending trendline warn of another test of primary support at 16000. Declining 13-week Twiggs Money Flow indicates long-term selling pressure. Failure of primary support would offer a target of 13000*.
* Target calculation: 16 – ( 19 – 16 ) = 13
ASX 200 hits ceiling
The ASX 200 index encountered both the declining trendline (from April 2011) and resistance at 4300. Low volume indicates a lack of enthusiasm from buyers. The strong red candle warns of another test of 3850; follow-through below Tuesday’s low would confirm.
* Target calculation: 4000 – ( 4500 – 4000 ) = 3500
Japan & South Korea buying pressure
Japan’s Nikkei 225 Index retreated Tuesday, but has completed a small double bottom, indicating a test of 9000. Bullish divergence on 13-week Twiggs Money Flow flags strong buying pressure. Breakout above 9000 would indicate an advance to 10000.
* Target calculation: 9000 + ( 9000 – 8400 ) = 9600
The Seoul Composite Index shows a weaker divergence on 13-week Twiggs Money Flow. Breakout above 1900 would offer a target of 2150, while respect would re-test primary support at 1650.
* Target calculation: 1900 + ( 1900 – 1650 ) = 2150
South Africa & Brazil
The JSE Overall Index is testing both resistance and the descending trendline at 31500. Breakout would test the 2008/2011 high of 33000, but respect would warn of a test of 30000. Reversal below 30000 would signal a primary decline to 26000. 13-Week Twiggs Money Flow indicates medium-term buying support but long-term selling pressure.
* Target calculation: 28500 – ( 31500 – 28500 ) = 25500
Brazil’s Bovespa index also shows medium-term buying support but long-term selling pressure. Respect of resistance at 58000 would indicate another test of primary support at 50000. Breakout above 58000 is unlikely, given global market conditions and falling iron ore prices, but would signal reversal to a primary up-trend.
* Target calculation: 50 – ( 58 – 50 ) = 42