EmailEuropean stocks are lower across the board. US action is on hold for the release of the Fed policy minutes at 2:00 ET.
Greek officials are meeting with euro-zone officials through Friday to find a way to kick the proverbial can down the road a bit further - Greece wants more time to meet deficit targets but German officials are balking. Concern that tensions will rise are one reason European stock exchanges are down about 1%. The Spanish exchange is down about 1.6%.
Japanese trade data have sent a chill through overseas markets. Japan recorded its largest July deficit ever, as exports to Europe fell 25.1% from a year ago. Exports to China were down 11.9% from a year ago. Exports to the US were up 4.7% on a year-over-year basis, but that is a lot lower than the 15.1% increase posted in June. Japan is the world's fourth largest economy and a major exporter. These data are significant.
Purchasing manager surveys for the euro-zone will be released tomorrow. The potential of weak data presents a real risk to European markets. The euro-zone recession is deepening and weak data for Germany would undermine the last bastion of support within the euro-zone.
The only US release today is existing home sales data at 10:00 ET.
Homebuilder Toll Brothers reported good earnings and an upbeat outlook. The housing sector is bouncing solidly off still very low levels. Dell, on the other hand, reported a year-over-year decline in earnings on a 7.5% drop in revenue, and lowered their forecasts for revenue and profit for the year.
The S&P 500 index has managed a modest upward drift over the past few weeks even though the global economic and US earnings outlooks have worsened. Expectations of the European Central Bank and the Fed coming to the rescue with massive efforts to boost liquidity and global economies persist. Volume has been very light.
S&P futures suggest a down open of only about three points but the momentum is fading.
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