Spain and Italy easily hurdled their initial refinancing needs. Yields dropped and Spain even awarded double its initial offer size.
It looks like the immediate danger from Europe has passed with the success of the ECB’s “liquidity injection.” The interesting thing is that the ECB said it is planning another offer of practically free three-year cash again next month.
On the local front, I found Miko’s Jan.12 blog entry quite interesting. The weakening Peso is certainly a concern, and possibly an extension of our weak exports. I sure hope President Aquino knows what he’s talking about. Are we as well positioned to serve the Asian BPO market as we have been serving the US BPO market?
All-in-all, there’s nothing from current events to suggest an immediate and sharp reversal of current local equity gains. Until the charts start showing reversal signs, I think local equities are still generally good to hold right now.
Happy Weekend, Traders!