The U.S. markets might be influenced (again) by European turmoil.
Borrowing rates are going up, the solvency of European banks are going down as the sovereign crisis deepens in Europe. On Saturday, the big news was the resignation of Silvio Berlusconi, the Italian Prime Minister. Following his resignation, Italy’s Senate approved a new budget law, clearing the formation of a new emergency government. That leaves an open question of what happens to the U.S. markets on Monday, November 14?
How did the market react when Lucas Papademos became the new Greece Prime Minister last week? He is excepted to try to avert bankruptcy and to introduce a new bailout plan. The results of somewhat positive changes in Greece were that S&P 500 ended last week with a 1 percent gain.
This week the markets might also be influenced by… the holiday season.
November marks the beginning of the holiday season. Investors, no doubt, will look for more improvement in retail sales especially when the data for October spending will be released. The release of this pertinent information will be tomorrow, Tuesday, November 15. There is hope for a seasonal lift, at least during the last few months of the year when holiday spending is hitting the stores.
A lot of things could influence the markets this week. Seems like a lot of pressure is being placed on the consumer.