Courtesy of John Nyaradi.
Economic skies remain turbulent and uncertain as Greece shakes up global stock markets
Investors faced another uncomfortable and turbulent ride today as the ongoing fight to stave off default by Greece rattled world markets.
President Obama and German Chancellor Merkel found the issue important enough to discuss by phone and agreed on “concerted action” being necessary after Dr. Merkel had a bad weekend, losing yet another regional election, this time in Berlin, as support for a Greek bailout continues to dwindle in Germany.
Bond markets aren’t happy as the yield on Greek 10 year notes topped 20% and the 2 year note topped 60%, and this is not good news before a large auction scheduled to take place tomorrow.
President Obama delivered his jobs plan and proposed tax increases which Republicans promptly labeled as “class warfare” and so it looks like the gridlock drama is due to continue.
Tomorrow starts the long awaited Fed meeting with markets looking for some version of “Operation Twist” on Wednesday in an effort to further drive down interest rates.
Finally retail investors continue to flee the gut wrenching volatility as Bloomberg reported that more money has been withdrawn from U.S. stock funds since April than in the five months after the collapse of Lehman Brothers three years ago.
Major stock market indexes took a wild ride with the DJIA (DIA) experiencing a 250 point high to low swing.
Tomorrow’s economic reports include August Housing Starts and August Single Family Permits
Stock Market Wrap:
DJIA: (DIA) -108; -0.9%
S&P 500 (SPY) -11.9; -0.9%
Russell 2000 (IWM) -2; -1.7%
NASDAQ (QQQ) -9.5; -0.4%
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