U.S. stock stock market today: After research, Some analyst concluded that the U.S stock markets can rally higher in the remaining days this year, given the U.S. treasury bonds yields were traded at extremely low levels, cuopled with the oversold stock market as well as the coordinated efforts of the central banks around the world which can spur the market further. While the stock market seems to be in the bullish channel, both the Dow Jones Industrial Average and the Nasdaq Composite Index are in the positive territories for 2011, but the S&P 500 index had fallen back into the negative space by the end of yesterday’s trading. The Europe’s ongoing progress has touched U.S and world markets’ nerves since the Greek sovereign crisis exploded. Good news or bad news out, tracked by market’s rise or decline.
The U.S. stock markets rose sharply last Wednesday, fully representing the investors’ optimism on the European debt crisi. The Fed coordinated with six central banks to reduce borrowing costs, regarded as a significant market regeneration. As the EU summit approaches, the investor sentiment should be more stable and warmer.
As the Italian prime minister announced new austerity plan, the confidence of the debt market had a further recovery, the Italian 10-year yield had gone back to the level of 6%, narrowing the gap between benchmark German debt rate, within 400 points. Although the tightening plans still have domestic trade union and other organizations in opposition, possibly further influence the recovery of the economy of Italy, but prime minister emphasized that if they don’t implement the plan, the Italian economy would collapse, and face the same maelstrom which Greek had slipped into. The plan was also welcomed by the international market, and helped the ECB to move forward to buy the Italian debt.
The French president Nicolas Sarkozy and German Chancellor Angela Merkel called for another European Union treaty for rougher fiscal rules for euro-region governments at the meeting held in pairs, hoping the summit scheduled on Friday will reach consensus to pull the Euro-zone out of the Sovereign Crisis. The bad news was that S&P had put the 17 euro-zone countries into the negative credit-worthy list, weighed on Tuesday’s Asian market.
The outlook for the Europen six triple-A rated countries is somewhat negative, to a large extent depend on the summit coming up, according to the analysis of Bloomberg. But the influence on the stock market is expected to be relatively limited.
In general, the European debt crisis and ease in danger seem to be on the right way. Investor confidence of the market is under recovery. If these days the Euro-Zone won’t send larger bad news, the short-term U.S stocks should be able to continue to maintain its up channel and high volatility.