The malaise remains the same this morning, with all eyes on Europe while corporate news reports in the U.S. take a back seat to the drama across the pond. Greece's prime minister has stepped down, so now the country has to deal with political restructuring at the same time its financial and economic conditions are in trouble.
There are also rumors now swirling that Italy's prime minister is considering a resignation. All of this helped push Asian markets lower overnight and European bourses in the red this morning.
Commodities are mixed, with copper lower and oil and gold higher. Oil prices have risen to $94.90, which seems odd in the face of all of the economic concern but there are also fears of escalating tensions between Israel and Iran. Gold prices are also higher near $1780.
The 10-year yield is moving back below its 50-day average to 2.03%; and the VIX is still above that 30 level I keep mentioning, up 4% today to 31.45 right now.
Trading comment: It's very difficult to figure out which days the European backdrop will take center stage with investors versus when the market seems to focus more on company fundamentals. Of the two, I think the former is harder to forecast, so I fall back on focusing on those companies that are still growing nicely and executing well despite the lumpy economy. Ultimately share prices should follow earnings growth higher, even as the multiple we pay for those earnings fluctuates with the sentiment yo-yo.
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