Stocks Fluctuate on Europe Concerns (Bloomberg)
While earnings surpassed estimates, U.S. stocks fluctuated as investors were concerned about Europe’s debt crisis in anticipation of a gathering of euro-area leaders scheduled for tomorrow. “It’s a yo-yo market,” Tom Wirth, senior investment officer for Chemung Canal Trust Co., in Elmira, New York, said. “We look forward and get a little nervous about events where we don’t know what the outcome will be. We’ve had a nice run. We’re going to have some digestion that takes place here before it turns again.”
Oil Flat Today (MarketWatch)
Oil finished almost unchanged today, as supplies of crude did not rise quite as much as predicted and distillate stockpiles continued their fall from last week. Crude supplies will likely continue to build in the coming weeks, said Tariq Zahir, managing member at Tyche Capital Advisors, and “with inventories well above their five-year averages on the supply side, we feel crude could remain under pressure over the short to medium term.”
Euro Falls against Dollar (Reuters)
The euro slumped today against both the U.S. dollar and the Japanese yen as investors anticipate tomorrow’s aforementioned gathering of euro-area leaders. The euro near-future fate hinges upon comments to be made by European Central Bank President Mario Draghi. “We expected euro/dollar to remain in tight ranges this whole week ahead of the ECB, which is what we have seen,” said John Doyle, foreign exchange strategist at Tempus Consulting in Washington, D.C. Tomorrow “could be eventful, especially if the ECB hints at a future interest rate cut in the coming months,” he said.
