Liams Last Post : markets rise on QE , Spain comes into focus now .

Good Afternoon ,

 

Liams Last post has been a bit sporadic because of marketing and client meeting commitments. The markets continue to grind higher as the liquidity injections from the FED feed into the US equity markets and the wave of liquidity is lifting all stocks.

 

Irish corporate news continues to be light , We have been marketing our view on CRH lately and the hold recommendation does seem about right given the challenges the stock faces and a background whereby the sector peers are turning more bullish about the inflection point being this quarter.

 

The clouds continue to gather for Spain , it is remarkable ..i continue to be fascinated . The sequence is copycat like. The Government talks austerity and reform , The central bank behaves cautiously. The Ratings agencies downgrade the outlook for the Banks , the banks fall , the bond yields rise , the ratings agencies downgrade the outlook for the Sovereign state, the banks fall , yields rise and a bond auction happens where coverage is paltry and so the contagion effect seeps into the psyche of the markets. Of course at this stage Spain has been joined by Belgium to face the scrutiny of the ratings agencies.

Ireland as a market game is done for the time being. The Bank subordinated debt holders now await their fate after the passage of the Bank Stabilisation bill which got railroaded through the Dail last night.

 

Have a good evening .

 

Liam

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

www.merrion-capital.com

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