Europe Sentiment Weighs On U.S.:
Greece default concerns rise.
U.S. stocks were set to fall sharply this morning but recovered in early trading on renewed concerns about the economic strength of Europe. Last week we identified the euro as a major contributing factor to changing market sentiment and we believe these concerns are not overstated. Greece may be in line for another round of funding from the European Union and International Monetary Fund.
Rumors swirled last week that Greece could default and investors are concerned about possible negative effects in the region which could add more pressure to Italy and Spain which are also under scrutiny by market players. Trading trends from major euro markets may be less interesting than watching euro in comparison to other currencies such as the yen and dollar. The euro reached a 6-1/2 month low last week against the dollar the day after President Obama announced his jobs recovery plan.