forgotten friday, page-60

Hey Paulbooma, chart shows 50/50 really doesnt it?

More info for you.

EQUITY STRATEGY COMMENT - From our vantage point, the recent rally in equities was driven mainly by liquidity. The ECB flooded the money market and provided EUR 442bn in its first 1Y tender (25. June). As a result, o/n rates fell sharply to 0.37%, from 0.9% in mid-June. It is therefore not a big surprise that the correlation between equities and fixed income, equities and commodities and equities and currencies has weakened in the last few days. The situation has hardly changed from a fundamental vantage point. Newsflows from manufacturing sector are still weak, and the credit channel has not improved. We therefore stick to our view that the European equity markets will fall considerably in the course of Q3. Alongside fundamental reasons, the main risk for the equity markets is a reduction in liquidity. However, this is unlikely to happen before September, as the ECB will wait for further evidence that the credit channel is not improving. Therefore, on a short-term horizon, the equity market may continue to rise, driven by liquidity. But in the medium term the risk of a pronounced correction is rising significantly-From deutsche