Stock Futures Up Today; Continued Slow Economic Growth Forecast
U.S. stock futures are up 25 basis points this morning (8:10a EST) after a 2% decline June 21 on the news of Moody's credit rating downgrade of Citi and 14 additional banks.
Separately, the Federal Reserve is observing that the current low interest rate environment will continue for the foreseeable future, with additional commentators forecasting an analyzed 2% growth rate trajectory in GDP. There is a prevailing sentiment today that consumers and potential home buyers could as a result defer purchases on this news, thus contributing to continued slow economic growth.
In the EU, a coalition government has evolved in Greece; however former Federal Reserve Chairman Alan Greenspan asserts the only way to properly manage EU finances and economies is with a consolidated political (governing) structure.
Investors' long term decisions should not overweight this weeks' events. Uncertainty and complexity as to long term economic and business impacts will continue to cause short term disruptive market volatility.