European indices inch back higher after the slight panic earlier
After the initial whipsaw, European equities were sold amid the negative reaction to the German ECB court ruling as the market digested the potential implications.
That said, nothing is set in stone just yet and investors are turning the other cheek given some time to digest the situation. The market certainly seems to be in a state of flux.
The DAX is now back up by 1.7% after having seen gains of over 2% earlier erased to just 0.7%. Other European indices are also keeping above 1% gains currently.
However, not all is bright and rosy as we are seeing Italian bonds fall further on the day.
10-year BTP yields are now up by 10 bps and causing the yields spread between 10-year BTP and Bunds to widen further to 241 bps currently.
In the currencies space, the dollar has given back some of its gains with the aussie and kiwi now moving back a little higher against the greenback while cable has pared losses to sit just above 1.2450 ahead of the London midday.
