“A Happy New Year, and may the trend be your friend! Thank you for another year and we are all looking forward to many more........

“I also have a few questions, have you noticed that the euro has broken down against the AUD?

"A few weeks ago you told us to follow the Ted-spread, for troubles in USA, I have done that and it is not moving in the right direction?

“Finally, I think Eoin talked about the telephone maker HTC a few weeks ago, valuations on this company?"

Eoin Treacy's view Thank You for your well wishes and please let us reciprocate to you and your family. Thank you also for pointing out the Euro's breakdown against the Australian Dollar. A weaker Euro is in Europe's interests and there is a wide interest rate differential with the Australian Dollar. A sustained move above A$1.30 would be required to begin to question medium-term scope for additional downside.

David referred to the European version of the TED spread in Comment of the Day on December 22nd. It has lost momentum over the last week but needs to pull back much more to suggest declining stress in the Eurozone's banking sector beyond the short term. The positive outcome to today's Italian debt auction should help stabilise sentiment at least in the short term.

HTC's yield has compressed from more than 8%, when I reviewed in on December 13th, to its current 7.1%. The share's historic P/E is 6.35 and estimated P/E is 6.68. Prices jumped, by almost 25%, following a reasonably favourable ruling in its tussle with Apple and some consolidation is likely in the short-term. Nevertheless, a reversion towards the mean, represented by the 200-day MA, remains a medium-term probability.