The short attention span of the U.S.
markets will shift overseas following yesterday’s rally on the back of
Friday’s “Fiscal Cliff” talks that investors perceived to be positive.
Eurozone worries will be competing with Mid-East violence
for the spotlight today following a credit downgrade of one of the
regions larger economies and as EU finance ministers discuss aid to
Greece. Moody’s became the latest credit rating agency to downgrade
France to an Aa1 rating after Standard & Poor’s did similarly
in January. Moody’s cited struggles with both high debt levels and
labor market issues, among other problems, as reasons for the downgrade.
The euro reached a low of $1.276 but has since moved above yesterday’s
closing levels and is now at $1.279. In other
Eurozone news, the regions financial brain trust meets today to discuss
a €44 billion aid package to Greece and to say the finance ministers
are uncertain about lending to the economically stressed country would
probably be an understatement. Here in the U.S.
a report on housing starts showed an increase of 3.6% in October, the
highest rate since 2008. Fed Chairman Bernanke is due to speak at the
Economic Club of New York beginning at 12:15 pm ET. Expect markets to
become a bit choppier as trading conditions begin
to thin out ahead of the long Turkey-Day weekend here in the states.
Have a great day!
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