Ahead of Wall Street - December 7, 2011
by Sheraz MianDecember 07, 2011 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Wednesday, December 7, 2011
With nothing else on the docket today, Europe will remain the dominant news, with markets looking for a favorable outcome out of the Friday EU summit meeting. I would expect the overall air of tentativeness of the last two days to continue in today’s trading session as well.
Germany poured cold water on hopes raised by a late Tuesday afternoon press report indicating the possibility of greater financial firepower at the disposal of European officials through two bailout funds. The German official ‘clarified’ today that the European Financial Stability Facility (EFSF) and the second permanent European Stability Mechanism fund set to get started in 2013, will not run simultaneously. Indication of two simultaneous bailout funds in a Financial Times report on Tuesday had helped raise market hopes.
This disappointment aside, Germany was able to reassure the markets by showing strong demand for one off its bond auctions this morning. Please recall that under-subscription to a German bond auction a few days back had raise fears that the Euro-zone crisis was affecting Germany’s financial profile. Today’s successful auction satisfies those concerns. We also have Tim Geithner, the U.S. Treasury Secretary, visiting France today and making reassuring comments about the outlook for the Euro-zone.
In corporate news, Talbots ( ) , the women retailer, is reportedly being acquired by private equity investors for $212 million. We also have a solid earnings report from Men’s Wearhouse ( MW - Snapshot Report ) ; the company also raised it outlook for the current quarter.
Director of Research
Please login to Zacks.com or register to post a comment.