(as of 7:10 AM PST)
After weekend developments, which saw
futures prices plummet over the weekend, stocks are battling back. While
international markets have fallen heavily, especially Europe, US investors are
taking a much more relaxed approach to the Greek referendum on Sunday whereby
Greeks rejected austerity and seemed poised to exit the Euro if necessary
rather than be subservient to creditor demands for another financial
bailout. While Greece's economy is small relative to the world and
Europe, the fear of anti-austerity rebellions across the rest of Europe
have Euro leaders worried that the story is still an evolving challenge to the
integrity of the European Union and the common currency Euro. US
investors seem unfazed for the most part. Stocks are down about half a
percent in early going and continuing to recover. ISM numbers (a key
measure of manufacturing activity) was solid and continues a pattern of data
that reflects a sound recovery in the US economy. Oil is down heavily
while gold is off fractionally. Volatility has made a big comeback and
will likely continue to surge based on new developments in Euroland.
While the current economic recovery is a very positive story, the Euro crisis
will likely carry the day and carry stocks further down as the day progresses.
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