Well that quick spark of a rise in the stock markets yesterday seems to have fizzled out as investors don’t seem to be buying that whole “Bailout will save Europe” thing… as they rightfully should. This will be a very interesting week. A story from Bloomberg goes into the details, have a read.
The euro weakened to $1.2737 at 8:27 a.m. in London and was 0.2 percent below last week’s close, after strengthening as much as 2.7 percent yesterday. The MSCI Asia Pacific Index dropped 1 percent to 118.99, with five stocks sliding for every two that gained. The Stoxx Euro 600 decreased 1.1 percent to 251.35. Standard & Poor’s 500 Index futures lost 0.8 percent, following the biggest jump in U.S. stocks since March 2009. Copper led commodities lower, falling 1.6 percent.
“Markets realized quickly that this crisis won’t be cured by adding liquidity, no matter how big it is,” said Toshihiko Sakai, head of trading for currencies and financial products at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. “The structural problems of the euro zone will persist. I’m not surprised at all the euro is losing strength again.”
– James Regan and Ron Harui, Bloomberg
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