Ireland Index Technicals Predicted CRH Earnings Cut, Bank Worries and S&P Downgrade (CDS Also Made Moves In August)

On Saturday, I posted a chart of the Dow Jones Ireland Stock which pierced firm support on big downside price action on Friday. You could tell traders were nervous about something when the red candlestick creeped through support on a line that held 3 times during the last 4 months. Technicals matter. Look at the headlines on Monday and Tuesday and the -6.35% move in the Ireland Index. I also threw up a chart of Ireland 5Y CDS during August. Credit default swaps insure debt for a fee. Credit traders who bought naked CDS in the beginning of August are up 50% on their money, or a financial institution hedged their long exposure in Irish Government Bonds.

Ireland Credit Rating Cut One Step by S&P on Rescue - Bloomberg

Anglo Irish takes 61% hit on $8.9 bln loans (NAMA) - Reuters

Bank of Ireland loans breach their covenants as values fall - Irish Independent

S&P cuts Ireland's rating on cost of bank support - Reuters

Bank of Scotland Ireland mum on hotel closure claims - Hotel News Now

CRH warns this year's earnings will fall 10% (anticipated recovery in the US has failed to materialise) - Irish Times

CRH shares tumble after firm cuts earnings outlook - MarketWatch

"Nobel Prize-winning economist Joseph Stiglitz told Dublin-based RTE Radio in an interview broadcast today that the European economy is at risk of sliding back into a recession as governments cut spending to reduce their budget deficits." - Bloomberg Video


$IEDOW (Dow Jones Ireland Stock Index)


If you were monitoring sovereign CDS (credit default swaps) this month Ireland's 5Y CDS made major moves. As I said previously, Ireland CDS increased 50% in August, from 208 basis points (2.08% to insure $10 million in debt) to 309 basis points. You can find the quote and chart of Ireland's 5Y CDS at Bloomberg.com. Here's a snapshot during August.


Ireland 5Y CDS during August 

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