Gains in Europe on Monday morning brought hope for a positive outcome on European issues. Rises on the FTSE 100 led by bank stocks such as Royal Bank of Scotland and Lloyds pushed optimism that Eurozone can finally save itself. Many have been calling this next few days “make or break” time for the single currency.
The positivity in Europe was quickly echoed across the U.S markets with the Dow Jones opening and shooting up around 150 points in the first half hour of trading. Stock prices of Bank of America and JP Morgan Chase were both up around 4% by midday and looked to be holding strong. IBM and HPQ were also looking strong, with both prices being up around 2%. Infact technology stocks are looking strong across the board and the tech heavy Nasdaq comp holding high up over 1.6% at the time of writing. Prices for APPL and DELL also up over 1.5% and EBAY rocketing up over 4% right now.
Seemingly meaningless economic data both missing forecasts and previous levels (ISM Non-Manufacturing PMI and Factory Orders) couldn’t halt any optimism as stocks were bought up in pre-market and into open.
But as many are thinking of Santa rally’s and historically strong Christmas period, there are many others who still see this as a bearish bounce. The underlying problems are still present, and any negative news from Europe could once again add the fear factor back into the market. So it’s all eyes on Europe, banks and data as we head into Christmas.