Eagle Eye Opener: Greece II; Japanese Stimulus; U.S. Futures Up »
Greece II, Only Bigger, Worse Off and More Stubborn (CNBC.com)
Investors still toying with the idea that Europe’s on the verge of a comeback need only look to Spain for a quick reality check. With unemployment at 25% and the Spanish economy mired in its own recession,Spain is fast tracking itself to becoming the next Greece. Worse,Spain’s economy is so much larger than Greece’s it has a much more dramatic negative pull on the finances of entire European Union (EU). Yet, for whatever reason, Spain has not asked the EU for bailout funds to stimulate the economy. As one former European Central Bank official put it, the Spaniards should have asked “yesterday.” Until they do, Spain’s future only looks dark for investors.
Japanese Horror Show: Government Stimulus Not Enough (YahooFinance.com)
Driven by a downturn in demand from the United States,China and Europe,Japan’s economy shrank in Q3 2012, sending investors scrambling for the exit. This contraction signaled a new recession and prompted Japan’s central bank into announcing another round of “powerful monetary easing” to spark growth… Unfortunately, this is the same strategic response Japan has been using since the ‘80s to try to get out of its dire financial straights. And it’s gotten them nowhere. Watch out for more of the same…
U.S. Futures Up, Global Marks Follow Suit on Greek News (CNNMoney.com)
With the Greek government finally passing another round of austerity measures,U.S.futures gained ground along with many global markets. Specifically, S&P 500 futures are up .33%, Nasdaq is following suit, rising .51% and even Dow futures have joined the party, gaining .28%. European markets seem to be pacing the U.S. indexes with Germany’s DAX currently up .39%,France’s CAC 40 slightly above water at .02% and the FTSE 100 holding at a gain of .4%. Finally, Asian markets weren’t quite as impressed, finishing mixed: The Shanghai Composite gained 0.49%, the Hang Seng jumped 0.21% and the Nikkei 225 lost 0.93%.