Europe continues to dominate the the psyche of the global investors. The political turmoil in Greece is bringing up the question of whether or not they will leave the Euro and return to the drachma. Dow futures are currently down 89 points. Nasdaq and S&P futures are down 21 and 11 points respectively.
Domestically, the economic data calendar remains light today with just wholesale inventories slated for release at 10am EST. This will leave the US markets susceptible to knee-jerk reactions on any headlines that emerge from Europe.
Most observers think there will be a new round of elections in June as neither side seems to have enough to seats to form a ruling coalition. The leader of the Radical Left has already come out and said that the Greek debt agreement s were null, hence the market reaction over the past few days. It shows the people on the ground are tired of being dictated to by the IMF and ECB.
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Greece does have fiscal deadlines approaching on whether or not they continue to receive bailout funds. Without a ruling government, one has to wonder the status of the funds and whether or not Greece can meet their fiscal obligations set forth under the agreements. Doubtful at best.
Commodities are enduring the same sell off that the broader market is. Gold prices lost their grip on $1600 per ounce overnight, while oil continues to fall over concerns over growth. Oil is actually good news for consumers as it will lessen the pain at the pump somewhat.
All in all expect a repeat of yesterday in regards to market action. Unless the headlines out of Europe really start getting surprising. [Read more...]