Eoin Treacy's view As the perception of risk in the Eurozone is reassessed I thought it might be timely to review some of the relevant peripheral markets.

Greece – The ASE Index was among the better performers from the 2012 lows; more than doubling between July and February. The recent pullback is the largest in the last year and while somewhat oversold in the short-term a sustained move below above 975 will be required to confirm a return to medium-term demand dominance. Greek 10-year yields stabilized near 10% from February following a steep contraction but broke out today suggesting heightened anxiety. National Bank of Greece remains in a consistent downtrend.

Ireland – The ISEQ Index broke out of a four-year base in January and is looking a little tired as it tests the 4000 area. Mean reversion is looking increasingly likely. Irish 8-year yields have paused mostly above 3.6% over the last two months and firmed from that region today. Follow through tomorrow would confirm a heightened sense of anxiety. Bank of Ireland was the only bank to escape nationalization. The share doubled between September and mid-March but the current pullback is the largest in more than a year and it will need to find support in the region of 14¢ if the six-month uptrend is to continue to be given the benefit of the doubt.

Portugal – The PSI20 Index has lost momentum over the last couple of months and dropped this week to break its progression of higher reaction lows. A sustained move above 6200 will be required to question current scope for a further test of underlying trading. Portuguese 10-year yields have stabilized near 6% but a sustained move above 7% would be required to suggest a heightened sense of anxiety toward the market. Banco Espirito Santo has held a progression of lower rally highs since January and a sustained move above €1 would be required to question the medium-term downward bias.

Spain – The IBEX Index pulled back sharply in the last three days to break the eight-month progression of higher reaction lows. A sustained move above 8500 will be required to question potential for a further test of underlying trading. Spanish 10-year yields found support near 4.7% two weeks ago but a sustained move above 5% would be required to question the medium-term pattern of compression. Banco Santander has fallen sharply over the last three days and while somewhat oversold in the short term, a sustained move above €6 would be required to check potential for a further test of underlying trading.

Italy – The MIB Index failed to sustain its breakout from the more than yearlong range in late January and has returned to test the 15,000 area. A clear upward dynamic will be required to check potential for additional lower to lateral ranging. Italian 10-year yields have held a progression of higher reaction lows since late January and a sustained move below 4.4% would be required to question potential for additional widening. UniCredito Italiano has been trending lower since late January and while oversold in the short-term a sustained move above €3.75 would be required to begin to question the consistency of the two-month downtrend.

The above instruments depict the pressure experienced by peripheral Eurozone markets over the last six weeks, as first Italy's inconclusive election and now the Cyprus bank settlement have increased uncertainty. While short-term oversold conditions are evident on a number of instruments clear upward dynamics are required to check momentum.