Evening review

Good Evening
We are coming to you a little later than usual due to the bank holiday here in Ireland, but we decided just to post a short review of what went on in today's trading session across the globe. It was an unusual start to the day we saw Cyprus making all the headlines with talk of an unprecedented levy on bank deposits. The president Nicos Anastasiades appealed to lawmakers to ratify the levy today. Just to have a quick glimpse at the proposal, and no wonder there was worries of a bank run;
Cyprus Proposed Deposit Tax
Deposits < €100k subject to 3% tax
Deposits €100k- 150k subject to 10% tax
Deposits > €150k subject to 12% tax.
The Euro currency was hit hard overnight and during the morning session along with European equity markets as uncertainty entered the frame. As expected the initial panic was all forgotten about when the US participants commenced trading and it was seen as a genuine buying opportunity as the $SPX traded down at 1545 prior to the opening bell. It is amazing to see the reaction to such news when put into context Cyprus accounts for less than .25% of the Euro areas GDP. I think we are going to need more the Cyprus to bring the correction into the market. The US equities want to continue going higher and unless something drastic happens that's the way its going to be. We are expecting to hear more in relation to the Italian election during the course of the week which may also send a few shock waves across the markets but unless we see some hardcore negative data it looks as though higher highs is the likelihood. I would also like to flag that we do envisage a correction in the coming weeks, as markets remain in overbought territory and we have seen a significant move in defensive assets (Gold) and Yen strength coming to light, but as we know its impossible to pick a top.

@Lowkeycapital