Courtesy of John Nyaradi.
Global financial roller coaster ride continues!
After a wild day yesterday, global investors face another day on the roller coaster of today’s stock market with news on employment, Greece and the Federal Reserve.
In Europe, (NYSEARCA:EFA) leaders scramble to save the Greek bailout package after George Papandreou riled the world with his call for a vote of no confidence in his government and a referendum on the austerity measures designed to save the Euro Zone and the Euro Dollar (NYSEARCA:FXE) He says he will get his vote of confidence and the referendum will pass as he heads for Cannes for an emergency summit with Chancellor Merkel and French President Sarkozy. The Euro (NYSEARCA:FXE) seemed to feel better about things today as it rose in early trade.
At home, the all important financial sector (NYSEARCA:XLF) got a boost from Master Card (NYSE:MA) reporting strong results with earnings up 38% as the consumer continued to show resilience in the face of ongoing scary news.
The widely watched October ADP report showed the private sector added 110,000 jobs for October versus 91,000 the previous month and this good news was supported by the Challenger planned job cuts dropping 63% for October. These two reports lay the groundwork for the monthly payroll and unemployment report due on Friday.
Finally, today Ben Bernanke and the FOMC make their statement and Dr. Bernanke holds a press conference and speculation is growing in favor of another round of asset purchases focused on mortgages to stimulate the injured housing industry.
Bottom line: The economy continues to show signs of improvement, however, Europe and Greece are the wild cards that will determine where we go from here. For today, the financial roller coaster will likely continue.
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