A quick look at what happened in overnight trading - the euro zone is showing strength with the S&P Europe 350 trading up 1.11% at the mid-day with leadership in the financial sector.
Spain was able to successfully sell €3.18 billion worth of 12 month and 18 month T-bills, pushing the 10 year yield to below 6%.
Spain's success sets the tone for the much anticipated 2014 and 2022 bond sales on this Thursday.
Germany's April ZEW reading unexpectedly rose to 23.4 from 19.7 month over month. What is the ZEW? It's a survey used as a leading indicator of economic health.
ZEW polls about 350 German institutional investors and analysts and asks respondents to rate the relative 6-month economic outlook for Germany. Investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity. An month over month increase is positive for the euro and the economy.
Headlines hit the wire once again after the Argentine government followed through on its plans to take control of (previously state-owned) energy company YPF ( YPF , quote ), seizing 51% of the company. Spanish parent company Repsol ( REPYY , quote ) stock plunged on the announcement given its 57.4% exposure in YPF.
Repsol officials stated they will take all legal avenues to protect the value of its assets and their shareholders' interests. Repsol considers the move "manifestly unlawful and seriously discriminatory".
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