Lack Of Economic Data Keeps Focus On Greece Leaving Euro In 2012 -Gold Dips
U.S. equities markets had little economic news to trade on today and gapped downward in early trading as more people anticipated Greece would leave the EU. The focus on Greece left little interpretation for U.S. company earnings and some investors may have stepped in to purchase equities based on medium-term valuations.
Stocks came back from early morning lows with the S&P 500 staying close to the 1,370 level which has been closely watched for the last few weeks. Investors may be happy if Greece leaves the European Union and this could help market participants evaluate country risk with more certainty in the long-run. We believe Euro decoupling will be good for markets. We are still closely monitoring tech, financials and small caps which outperformed as commodities dipped. Gold may have peaked in the short run while sector rotation makes equities more attractive as big players like Warren Buffett shun the precious metal. Gold Comex June 12′ could remain below 1,600 relatively soon.