Markets have rallied a little bit as we head into the G8 meetings. It is likely that we will hear positive noise about global government co-ordination and support for economies. That can lend a little support to the market, but is unlikely to do anything significant.
Volatility is increasing as the intra-day swings are getting larger again even if the closing changes aren't very big. Greece remains the big headline generator. It looks like the issue will be pushed to the brink before everyone caves in and kicks the can down the road. I think that 'brink' is still a couple of weeks away, so have a short bias for a bit. More economic data due out. The market has been resilient in the face of weak data, but that has gone hand in hand with increased QE3 chatter.
Sovx 198 unch
MAIN 103 unch
IG16 90.50 unch LQD 111.33
HY16 102.125 unch HYG 91.87