US Stocks Slave to Debt Fears in Eurozone
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US stocks have been volatile Wednesday as fears related to a widespread financial crisis in the Eurozone continue to dominate trade.
Equities fell sharply just after 10:10am ET following headlines out of Austria which said the country's parliamentary finance committee rejected adding a proposed upgrade to the European Financial Stability Facility to its agenda. The market however -- certainly underscoring the fear and sheer headline risk currently looming -- read the headline as "Austrian parliamentary finance committee rejects increase of EFSF." The Dow promptly dropped 118 points to an intraday low of 10,993.
As clarifications and corrections made their way to newswires, US stocks began to rebound. Despite the official vote against the measure, a special meeting of the Austrian finance committee will be taken up to address it in the near future.
Additionally, Greece's Prime Minister George Papandreou is scheduled to hold a call with Germany's Angela Merkel and France's Nicolas Sarkozy discussing further details of a rescue packaged agreed to on July 21st. A source has said Papandreou will brief Merkel and Sarkozy on the Greek inner cabinet and its commitment to restructuring and spending cuts. The call is set to begin at 12:45pm ET.
Moody's downgraded the long-term debt ratings on two major French banks, SocGen and Credit Agricole. The credit ratings agency cited exposure to Greek debt.
Investors are now settling down following the initial wave of confusing headlines. Stocks have now retaken positive territory: the Dow is up 36 points, the Nasdaq is up 20 points and the S&P 500 is up about 5 to 1,178.
Equities fell sharply just after 10:10am ET following headlines out of Austria which said the country's parliamentary finance committee rejected adding a proposed upgrade to the European Financial Stability Facility to its agenda. The market however -- certainly underscoring the fear and sheer headline risk currently looming -- read the headline as "Austrian parliamentary finance committee rejects increase of EFSF." The Dow promptly dropped 118 points to an intraday low of 10,993.
As clarifications and corrections made their way to newswires, US stocks began to rebound. Despite the official vote against the measure, a special meeting of the Austrian finance committee will be taken up to address it in the near future.
Additionally, Greece's Prime Minister George Papandreou is scheduled to hold a call with Germany's Angela Merkel and France's Nicolas Sarkozy discussing further details of a rescue packaged agreed to on July 21st. A source has said Papandreou will brief Merkel and Sarkozy on the Greek inner cabinet and its commitment to restructuring and spending cuts. The call is set to begin at 12:45pm ET.
Moody's downgraded the long-term debt ratings on two major French banks, SocGen and Credit Agricole. The credit ratings agency cited exposure to Greek debt.
Investors are now settling down following the initial wave of confusing headlines. Stocks have now retaken positive territory: the Dow is up 36 points, the Nasdaq is up 20 points and the S&P 500 is up about 5 to 1,178.
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