Investors are getting a bit of breathing room this morning after Germany’s GDP numbers surprised to the upside. Of course this means ignoring the downgrade spree the S&P went on with Italian banks after the close yesterday. Dow futures are currently up 61. Nasdaq and S&P futures are also pointing to a higher opening, both adding 20 and 9 points respectively.
The German statistics agency reported that country returned to a growth footing in the first quarter, with GDP rising by.5%. The consensus was for a .1% increase. Italy’s GDP fell.8% confirming the country was back into recession territory.
In the ongoing Greek soap opera some officials floated the idea of a technocrat government. This is obviously designed to push through IMF and ECB reforms so it is doubtful the anti-bailout parties would sign off. Much less the populace.
Asia markets fell overnight as they reacted to the market moves in both the US and Europe. Investors continue to fret over the possibility of a Greek exit from the EU.
Data wise, investors can expect a packed slate today. At 8:30am EST, consumer price index and retail sales reports will be released. At 10am EST, inventories and a homebuilding index will be released.
As long as nothing new or catastrophic develops out of Europe, expect the data to be the market driver today vs headlines from Europe. [Read more...]