The Market Rally In Europe Has Vanished


Photo: M.V. Jantzen on flickr

UPDATE 5:00 AM ET: The below post is accurate, except the market rally has now vanished.

Spain is off 1.5%. Italy is flat. German gains have been sliced.

ORIGINAL POST: Europe is higher pretty much across the board yesterday, as stocks try to put together two straight days of gains.

The wave of green is surprising and remarkable.

Italy is up 1%. France is up 1%. Germany is up 1%.

The only market that isn’t putting in a solid showing is Spain’s IBEX, which is roughly flat. It was the huge loser yesterday.

US markets, which are playing catch up, after having been closed yesterday, are due to gain about 1%.

So what have US investors missed over three day weekend?

There are basically two stories in Europe, one horrible, and one not as horrible, depending on your perspective.

Greece continues to have huge fires to put out banking-wise. Its market plunged 2% on Monday amid reports of the need for another 30 billion euro banking rescue.

The less-horrible story is that polls in Greece show a tight race, with the pro-bailout New Democracy party having a decent shot winning. Its market gained 7% on Monday.

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