EmailThere is deep skepticism that there will be any tangible results from the current European summit. European stocks are lower, the euro is lower, and S&P futures suggest a down open of about 8 points.
The summit talks are just starting as this is being written; and the crisis is deepening. Perhaps conditions are not severe enough yet to force politicians to act, but they are getting close. The current stress comes from the Spanish bond yield rising to 6.94% amidst reports that the Spanish economy is retrenching sharply.
The best that can be said for today is that expectations for the current summit are low. Anything substantive announced tomorrow or over the weekend could provide a real boost to the stock market. Once again, unfortunately, the stock market is captive to the highly uncertain outcome of political developments.
New claims for unemployment for the week ended June 23 fell to 386,000 from a revised 392,000 the prior week. Claims continue to run at a level that suggests only modest payroll growth. First quarter real GDP was unrevised at 1.9%. Neither of these releases will have any market impact.
All eyes remain on Europe.
Founder and Chairman, Briefing.com
