This morning is looking like another day that the financial markets will be driven by more European headlines. We did see a decent bond auction in Spain, however Italian bond yields crossed back above the pivotal seven percent mark. I hate to keep saying it, but I believe the markets are going to continue to react to the headline news overseas until they believe that fundamental change is underway. As of right now, the markets are viewing the German Bunds as the only safe haven in European Debt. It is their way of seemingly telling us that it only views one country out of the 17 total countries in the European Union as a conservative place to buy bonds.
Back at home we have seen a decent rebound in stocks after some fairly decent PPI and Retail Sales numbers. PPI of course stands for Producer Price Index, which measures the change in selling prices by various domestic producers. We will have to wait and see if all these economic reports and earnings releases can cause our U.S. markets to slowly decouple away from the European tail risk currently present.
Eric Marvin- Financial Advisor in Fort Myers, FL
JPT111511-1863
