Markets Surge On Positive Eu Summit Outcome

NEW YORK (BBH FX Strategy) -- Global stock markets continue to surge after news that European policy makers had forged an agreement at the emergency summit. While we expect this is unlikely to resolve all fundamental challenges that plaque the euro zone, the outcome of the summit is likely to have satisfied market expectations. As a result, EZ spreads have come in sharply, European banking shares are 7% higher and the dollar is softer across the board. On the data front, euro zone Economic Confidence fell much less than expected, eurozone M3 money supply growth accelerated more than expected, and the UK CBI Distributive Trades Survey also came in above consensus.

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