Market Futures Down; Change(s?) in Leadership
U.S. equity markets futures are down over 50 basis points (as are most of the world's major equity markets) at 9:23am EST, recovering from declines on the announcement by Italy's PM Berlusconi that he will not resign (Italy’s parliament votes November 8 on the 2010 budget), and as Greek PM Papandreou agreed to support a new government in Greece as he has announced his decision to step down November 6. Both Italy and Greece seek international financing and EU talks continue today to formulate a rescue plan, with a focus on Greece and Italy and instilling broader confidence in the fiscal health of the eurozone region.
At the short end of the long view, expect global equity markets to remain volatile, and eurozone sovereign debt risk and interest rates to remain high compared to the benchmark German bonds.