Posts Tagged “PIIGS”

Those “New” E.U. Fiscal Rules Aren’t So New

2 | By Shah Gilani

Very soon we will see if the old market adage “Buy the rumor, sell the news” is true.

While rumors of Europe’s impending demise were momentarily shot down by an array of silver bullets, the actual news out of Brussels of a grand bargain wasn’t… exactly… honest.

Let’s call the half-measures agreed to by European leaders “Brussels sprouts,” because they’re more like “green shoots” than a cabbage patch panacea.

The leaders agreed to agree that they needed an agreement on how to more closely integrate their fiscal and monetary interests.

Yeah, that’s what they said. I say good luck with that.

Actually, they made some other moves, too.

Find out what else these European “leaders” did…

A Rally and a Reality Check (or Two)

2 | By Shah Gilani

“Rudolph with your nose so bright, won’t you guide my sleigh tonight…”

Thank goodness there’s a light out there somewhere, so we can see what’s coming.

And judging by last week’s market action, guess what?

Santa Claus is coming to town!

Ho, ho, ho, what a rally. The Dow Jones Industrials rose 787.64 points, a 7.01% jump, making it the venerable benchmark’s second-best weekly up-move ever! The S&P 500 rocketed up 7.39%. The Nasdaq Composite shot up 7.59%.

But the real winner was the broader market, encompassing the less muscular household names ensconced in the Russell 2000; it rose a whopping 10.34%.

Speaking of the 10% gainers club, guess who else got their tickets punched on this sleigh ride? Not surprisingly (considering a little thing called “short-covering”), Italy was up 10.4%, Spain was up 10.24%. France was up 10.78%, and Germany was up 10.7%.

The week before last, not one single stock market in the world advanced by even a hair. Last week, every single key stock market in the world rose – and very impressively.

Oh, wait a minute. There was one little country that actually fell almost 1%. Good thing they’re not on anybody’s radar and don’t matter much. Who was it, you ask?

China.

Ho ho… uh-oh!