June 12th, 9: 00 am
The rally that has in the Asian session on Monday and moved through Europe couldn’t hold the now as it traveled west to Wall Street. Almost from the opening bell, stock prices drifted lower as the initial elation over Spain’s bailout decision on Sunday was overshadowed by the upcoming presidential in Greece. Until the outcome of that election is certain, investors are likely to San Gimignano very cautiously. One strategist from JP Morgan Chase believes that if the Greek government can abide by the existing terms of the bailout, that markets could at least find a bottom, and perhaps even new out a small rally. But at this point, it appears that the now could swing in favor of the anti-anti-austerity bailout/parties, who are now arguing that Spain is getting preferential treatment and into the agreement needs to be renegotiated.
The DJ30 initially surged 100 more points but the gains were quickly pared and by the end of the trading day was down 83.29 points? the SPX500 was also down by 10: 31 points and the NASDAQ was lower by 36.49 points. Ahead of the Spanish announcement, and a clear testament to the credo “ buy the rumor sell the fact, ” it was only last week that the three indices logged the largest 1-day gains in 2012.
Though estimates of how much Spain’s banking sector might eventually need have been fairly broad, with some going as high as $ 100 billion, some analysts think that the bailout in an equivalent amount will be insufficient, and that in due time Spain will be back to the table asking for another handout.
Looking further ahead beyond this weekend’s Euro-do-or-die Greek presidential, the Federal Open Market Committee will be meeting next week, and there is still some expectation that Operation Twist could be extended beyond its expiration this month. That speculation is likely to lend some support back to Wall Street.
The rally that has in the Asian session on Monday and moved through Europe couldn’t hold the now as it traveled west to Wall Street. Almost from the opening bell, stock prices drifted lower as the initial elation over Spain’s bailout decision on Sunday was overshadowed by the upcoming presidential in Greece. Until the outcome of that election is certain, investors are likely to San Gimignano very cautiously. One strategist from JP Morgan Chase believes that if the Greek government can abide by the existing terms of the bailout, that markets could at least find a bottom, and perhaps even new out a small rally. But at this point, it appears that the now could swing in favor of the anti-anti-austerity bailout/parties, who are now arguing that Spain is getting preferential treatment and into the agreement needs to be renegotiated.
The DJ30 initially surged 100 more points but the gains were quickly pared and by the end of the trading day was down 83.29 points? the SPX500 was also down by 10: 31 points and the NASDAQ was lower by 36.49 points. Ahead of the Spanish announcement, and a clear testament to the credo “ buy the rumor sell the fact, ” it was only last week that the three indices logged the largest 1-day gains in 2012.
Though estimates of how much Spain’s banking sector might eventually need have been fairly broad, with some going as high as $ 100 billion, some analysts think that the bailout in an equivalent amount will be insufficient, and that in due time Spain will be back to the table asking for another handout.
Looking further ahead beyond this weekend’s Euro-do-or-die Greek presidential, the Federal Open Market Committee will be meeting next week, and there is still some expectation that Operation Twist could be extended beyond its expiration this month. That speculation is likely to lend some support back to Wall Street.
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