Hollywood Ending? Spain's Bank Earns, Egypt Chills Out, Global PMIs Strong

Wall Street Journal this morning:

European stock markets advanced Wednesday as concerns about the unrest in Egypt began to ease and upbeat manufacturing data showed the global economy continuing to grow…

The bullish mood early Wednesday was supported by the strength in Tuesday’s global purchasing managers’ index surveys and the U.S. Institute of Supply Management manufacturing data, which all demonstrated that the global economy has strong momentum at the moment.

It feels good to feel good but many on Wall Street have refused to let themselves do so in quite some time.  I’m still on edge myself, probably because I read too much.

Anyway, complacency and the fear of complacency in this market are now well-trodden memes in the financial blogosphere so I’ll skip that whole appetizer course and bring out your entrees.

Joe Weisenthal just invented a new type of blog post, one in which the headline is longer than the content of the post.  My pal Joe is a pioneer!  But his headline at Clusterstock is all you need:

Egyptian CDS Spreads Are Collapsing, As Internet Is Turned Back On, And Military Tells People To Go Home

Meanwhile, European peripheral bond markets are shaping up and acting normally.  Spain’s banking giant BBVA just reported a just-fine-thank-you quarter this morning, alleviating fears of another round of collapses and bailouts.

“Kicking the can down the road”, “New Normal”, “Ripple Effects”, fine.

But today things feel…kind of OK.

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