Debt, Leverage And Stimulus Driving Markets From Europe To China

For more than three years, the Italian 10-year government bond yield traded in a range with 2.5% serving as a market top of sorts. Then in June, that level was broken, with both fundamental and technical influencing markets. The higher rates result, in part, from budgetary issues that the EU has faced before, most notably in Greece. The moves higher in European rates come as a Capital Economics report notes that monetary easing, sending rates lower, isn’t altering China’s “gloomy” outlook for equities. As the US recovers from the still largely unexplained market drop of October 9, China remains meaningfully…