Stock markets around the world are green across the board.The Greek debt crisis and the risk of contagion spreading through the eurozone and eventually the world economy continues to be a leading risk that is holding back many reluctant investors. However, many have argued that a Greek debt default is fully discounted into the markets and has been for a while.
Meanwhile, global economic data continues to surprise to the upside. Yesterday, we learned that weekly initial unemployment claims in fell to a four-year low in the U.S. And jobless claims have had a strong inverse correlation to stock markets for years.
Here’s a roundup of global markets:
Japan’s Nikkei is up 1.6%%.
Korea’s Kospi is up 1.3%.
Australia’s S&P/ASX is up 0.3%.
China’s Shanghai Composite is up 0.0%.
Britain’s FTSE 100 is up 0.3%.
Germany’s Dax 30 is up 0.8%.
France’s CAC 40 is up 1.1%.
Spain’s IBEX 35 is up 0.7%.
Italy’s FTSE MIB is up 0.6%.
This is not to say fear are gone and traders aren’t jittery. Yesterday, UBS’s Art Cashin said traders are worried about the potential unknown consequences of a Greek debt default. Specifically, they are concerned about what could happen if the credit default swap markets lose credibility. Ultimately, it could send us back to the “middle ages” wrote Cashin.