Strong resistance level here at 118.83 going back to the high i 2005. When we break it opens up room to 121.
Should be able to get some help from the US
Where the big story still is the heavy underperformance of Agency paper following the less than clear support from both Paulson and Kaskkari last week
Eurostoxx opening relative weak Monday morning, so question if that is where the support to bunds will come from.
Would watch eur/usd for a move back below 1.25 for more weakness in equities this week.
Other themes to watch this week.
- G20 is over more or less as expected. Maybe some positive tones on global trade as a long term positive
- Bail-out of GM seems less certain now than before the week-end
- No big fiscal package in the US before Omaba takes office in January (Goldman Sachs is now talking about a 4% package of around $ 600bn)
- November 15 hedge fund redemption is behind us
- Did we have a successful test of the October bottom in equities in Thursday
- Citigroup to offer big plan today
- Inflation data week in the US
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