by Bill McBride on 11/08/2012 09:12:00 PM
Thursday, November 08, 2012
Tim Duy remains depressed about Europe: Europe Back In The Spotlight
Europe faded from the news over the summer. European Central Bank President Mario Draghi's shift to allowing his institution to serve as a lender of last resort calmed nerves and took the worst case scenario of imminent breakup off the table even though the program has yet to be implemented. With crisis again averted, market participants shifted their focus to the Federal Reserve and the US elections.I wonder when we will see a headline reading "Europe is Back", instead of "Europe Back in he Spotlight"? Not any time in the near future. Very depressing.
In the meantime, economic conditions in Europe continued to slowly deteriorate. We are now looking at another year of dismal growth in the Eurozone. This crisis seems to have no end in sight.
Bottom Line: Yes, I remain a Euroskeptic. Maybe it is just in my blood. Europe still looks ugly, and will continue to be so for the next year at least (I tend to think wave after wave of austerity will push the Eurozone into a multi-year malaise, but let's just take it one year at a time for now). I expect European troubles will continue to cloud the global outlook and vex the earning plans of large multinationals for the time being.
• At 8:30 AM, Import and Export Prices for October. The consensus is no change in import prices.
• At 9:55 AM, the Reuter's/University of Michigan's Consumer sentiment index (preliminary for November). The consensus is for sentiment to increase slightly to 83.3.
• At 10:00 AM, the Monthly Wholesale Trade: Sales and Inventories report for September will be released. The consensus is for a 0.3% increase in inventories.
Posted by Bill McBride on 11/08/2012 09:12:00 PM