Stock futures were falling over the extended Presidents Day Weekend before finding their footing. Stocks look to open the trading week relatively flat from last weeks close. Greece, after years of creating chaos in the market, is not scaring anyone these days.
Here are some great articles to start off your morning with:
Another day, another Central Bank move has lifted stock futures higher. .. go figure. Greece negotiations will resume Monday, stock futures initially rallied on that news, but then fell, but not for long. The BOE is this morning's headliner with more, just buy it baby, type talk. Stock futures are now up .5% . Crude oil is recovering. It's been a nasty two day slide for crude, with some $19 puts on Monday going for over $1.00. The short term 'crash' I was looking for came to fruition. Looks like the Central Banks don't mind letting a few things fall.... which is nice.
Here is what I am reading this morning.
The Ancient Greek Comedy provided a break from reality, which is exactly what is currently being negotiated for Greece.... another break from reality. Years of poor fiscal policy have led to debt levels that are impossible to service. The reality is if Greece was a large corporation it would have done the obvious and filed for bankruptcy in 2011, and in 2015 we would be talking about the amazing Greece recovery, not how many more billions of Euro's they need just to survive the week.
In August of 2012 I noted just how adept Europeans are at soccer:
Who are the ones that will ultimately foot the bill for Draghi and the ECB's actions? All those in the Eurozone, even the countries who have their house in order, such as Germany. Bailouts and money printing do nothing but mask the underlying rot. It prolongs the inevitable.
Give the central banks around the world a round of applause. If can kicking were and Olympic event they would surely be gold medal winners.
We find ourselves yet again at another can kicking moment.
Stock futures struggled for direction on Tuesday, pinned down somewhat as investors continued to watch Greece-related headlines and after another batch of downbeat data came from China overnight.
Fresh data from China showed consumer inflation at a five-year low, suggesting weak consumer demand. Meanwhile in Greece, officials said late Monday that they plan to proposed a debt-compromise plan to creditors in Brussels on Wednesday. The country still plans to reject some of the strictest austerity conditions, and the brinkmanship between Greece and its international creditors has been rattling markets for days.
Here is what I am reading this morning:
Friday was a fitting end to a memorable week. The Jobs report is the talk of the town this weekend. Rate hikes coming sooner than expected now? In 2008 when ZIRP came to be, 2010 was the year of the rate hike. Almost 7 years into unprecedented Central Bank action, rate hikes sound more like the voices of every sports fan before the start of the season, who think this is the year their team will win it all. As the season comes to an end and their team has failed to win the Championship they are quick to say "Next year will be the year". Perhaps this will be the year the FED hikes rates.... and if they don't.... there is always next year.
This weekends reads:
