(as of 7:10 AM PST)
Turmoil in international markets is spilling over to US indexes with markets down triple digits once again. Both Asia and Europe are sustaining losses of as much as 2%, with a lack of progress in Greek financial negotiations being the main culprit. Leaders of Greece are digging in against creditors that are demanding more austerity in state spending. There is also fear of contagion in other European states with Italian and Spanish bond yields spiking. In addition to the bad news from Europe there was an unpleasant surprise in US economic data with manufacturing falling hard last month, when markets were anticipating a recovery. On the plus side, homebuilder sentiment was at a nine month high and well above expectations. Oil is down on the assumption that slower economic growth will be a drag on demand, while gold is higher it what appears to be investors looking for a safe haven in a tough market. Markets could turn abruptly to the positive side if there are positive developments on Greece, but it sure feels like that investors are looking for reasons to take profits in what seems to be a very frothy market.
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