The wait and see policy adopted by investors ahead of Thursday’s Euro summit, did not change in US and Asian trading as European authorities unveiled their vision for the future, a 10-year plan designed to strengthen the eurozone and prevent future crises. However, the markets were quick to view it as not addressing the current debt problems.
This week, the markets have dropped on concerns that the European leaders at the EU summit on Thursday and Friday would fail to agree immediate measures to try to halt the current crisis, which has now consumed 5 eurozone members.
One of the bigger changes of the new proposals is that whilst previously eurozone members had to keep their budget deficits under a certain level, a European treasury would now be able to enforce changes to their budgets in order to keep their deficits down, essentially giving the E.U more powers.
US stocks closed higher on better than expected housing data with the Dow Jones Industrial Average adding 0.26%, the S&P 500 index increasing 0.48%, and the Nasdaq Composite index rising by 0.63%. The Case Shiller housing index, compiled by Standard & Poor’s, showed seasonally-adjusted prices rose 0.7% from March to April. This was an improvement from the 2.6% annual decline seen in March and much more pleasing to the Fed this time last year when prices declined 1.9%. The house price data counteracted disappointing consumer confidence figures with The Conference Board reporting that its index of consumer confidence fell to 62.0 in June from a downwardly revised 64.4 last month and worse than the expected reading of 63.5; for the 4th month in a row the figures have declined
Today should be more of the same for Binary traders, a lacklustre trading session ahead of Thursday and Friday’s Euro summit. With little in the calendar today to get traders too excited, look out for how the European markets digest the Euro vision announced yesterday evening.
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