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Analysts at Rabobank suggest that a lot of today’s trading will likely be driven by the global themes of trade, geopolitics, and Italy.

Key Quotes

“The Italian risk off, by the way, could easily become a more general “Southern Europe” again if Italian spread widening spreads to Spain (pun intended). Bloomberg is reporting that the Spanish opposition parties may be planning a vote of no-confidence in PM Rajoy, after some of his former aides had been convicted of corruption yesterday.”

“There are still some data releases of note today. In the US, the preliminary estimate of April durable goods orders is due. The headline is expected to fall on the back of volatile aircraft orders. Excluding transportation, durable goods should be able to continue their gains. With the earlier purchasing managers’ indices also reporting stronger orders and increasing backlogs, this might be another piece of evidence pointing to supply constraints slowly building in the US economy.”