Euro Stocks Fall for 8th Day, U.S. Futures Rise

Posted by Mike Tirone - Tuesday, August 9th, 2011

U.S. stock index futures rose, which indicates that the Standard & Poor's 500 Index will rebound from its biggest drop since 2008, while Treasuries fell. Also European stocks shifted around gains and losses, oil made a nice comeback and the Swiss franc added some strength.

From Bloomberg,

S&P 500 futures added 1.7 percent at 8:44 a.m. in New York, after the benchmark gauge tumbled 6.7 percent yesterday, the most since December 2008. Treasuries, the benchmarks for the $34 trillion U.S. debt market that is more than twice the value of American equities, fell with the 10-year note yield up seven basis points to 2.39 percent. The Stoxx Europe 600 Index traded down 0.1 percent after gaining as much as 1.6 percent. Italian 10-year yields slid 16 basis points. The franc appreciated against its 16 major peers. Oil gained 1.6 percent.

“The recent stock market falls have highlighted that world growth is weakening, raising the prospect of a recessionary scenario, and governments need to do something about that type of scenario,” said Jason Teh, of Sydney-based Investors Mutual Ltd. “The question is, when do you expect the government to provide some sort of intervention measure or stimulus?”

Read the rest...

In the video below, Joseph Balestrino, a fixed-income market strategist at Federated Investors Inc., discusses Tuesday's Federal Open Market Committee meeting and how it all could affect the financial markets (in a negative and positive way).

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