The EU Debt Crisis Gets More Scrutiny:
New countries in focus as market participants dig deeper into the numbers.
News from the EU crisis wasn’t positive today which sent investors looking for safe havens and kept the Dow Jones hovering around the 12,000 range. Warren Buffett may not like European banks and the OECD stated the European debt crisis may continue to have a negative impact on the market for a long period. Industrial production in the euro zone fell which also increased jitters that the EU contagion affect has largely begun and that a deep recession in the region is more likely.
U.S. financials led the declines today as market participants shunned bank stocks. Although the leadership in Italy and Greece has changed recently, investors are unsure of what may come down the pike and Spain, Portugal as well as Ireland are getting more scrutiny as if Italy wasn’t the last shoe to drop. We are looking carefully at volatility again and bond rates from major European ‘core’ nations to see where the market may be headed.