|
Euro
Area and U.S. markets have been under
pressure for months as debt and budget issues continue to be troublesome.
Germany, France, and the entire Euro
Area along with the EU and the U.S. having a
difficult time with debt and budget matters, had kept stocks in a trading range.
Traders and investors had little else to focus on through the Summer-Fall months and
into Winter.
A 100B Euro rescue
package for Greece was approved. That and other related Eurozone news inspired the markets to
rally out of the trading range.
But Greece had decided to conduct a
referendum, a democratic vote by the people to finally decide on the mater.
Global markets plunge on the Greece decision to conduct a vote.
The referendum had since been abandoned and
a vote of confidence was taken on November 11, 2011. Greece PM Papandreou won the
vote setting the stage for a possible calmer period as Greece and other
countries reform the
Governments.
Germany and France agreed upon
measures to try and build global confidence but had a hard sell to the other
Euro Area countries as well as the EU.
The week of December 4, 2011 was
an important week for the Eurozone summit to make final plans to address the
debt issues plaguing Europe and the global community.
Standard and Poor's Ratings Services provided the incentive to acquire a agreement among the Euro Area countries
by threatening a downgrade.
S&P placed the Euro Area countries on
credit watch negative and as much threatened to a speedily analysis if an
acceptable deal wasn't acquired at the summit.
The Eurozone summit ended and the leaders put forth
measures they believed would satisfy critics and the markets.
Most analysts didn't think this would
be enough and believed debt defaults would occur.
Although volatility has settled down
somewhat from the Summer-Fall months, models continue to show volatility could
pick back up.
Santa had too much to do on Christmas, delivering presents, had no time for
investors, sending the S&P 500 index flat for the year.
As promised, S&P Ratings Services downgraded most of the Euro Area countries and
the stability facility.
The new year has produced no volatility, yet. So far in 2012 we are seeing
markets in the U.S.
disconnect from the troubles in Europe.
Stocks have been grinding higher in a
steady slow pace with little setback. The S&P 500 index has pushed through
the top of the trading range and is currently testing the outer limits.
Where we go from here is going to be based on earnings forecast/ outlook from
companies and Europe for months to come.
Tomorrows stock
market open- outlook.
The forecast for the U.S. stock market.
|
