Things looked red and flat until Draghi started pledging he’ll do whatever he needs to do to save the euro, now all is well in the world. “ECB Wants To Break Link Between Banks, National Govts.” Yet… “The Exact Scope Of Supervision Still To Be Defined.”
The markets are waiting on 8:30 EST for the claims and durable goods numbers. Expect volatility just before the open.
The markets took a nice 1% pop this morning in Europe and duly followed with a 0.5% rise in the S&P Futures. I initially thought it was the formalisation of a $30 billion rescue plan and a deficit target extension announced for Spain. Alas, it looks more like the result of a meeting (strategic dialogue) between China and the European Union. That’s news worth fading.
This is the 3rd strategic dialogue in 3 years. I didn’t look at the market reaction to the others, but I’d bet the market bounced with a short half-life.