If there is such a thing as a consolation prize in the markets today, it’s the fact ES bounced ~30 handles from 4am lows. Unfortunately, there is no consolation knowing the global markets could be spiralling out of control while we sleep due to elevated risks remaining.
After 4 days of silence, Italy finally made some official comments providing some relief to the spooked out market. An auction went off as well after rumours it might be withdrawn all together. The markets seemed almost to capitulate overseas at 4am.
Meanwhile on this side of the pond, we just may have some of our own jitters emerging. Yesterday, noted.. “Also, U.S earning reports tonight are not very comforting”. This is the notable takeaway for the markets as MCHP negative pre-announcement, NVLS poor guidance, INFY, QSFT calls drew attention. In all, it shouldn’t be a surprise as the market already shrugged off tech blow ups and rallied…”a few blow ups from US tech Thursday night and some European blow ups have turned the tide some making for a murky picture ahead.” June 27. Unfortunately, these blow ups and poor guidance commentary are going to catch to the market sooner than later. We need some ‘relief’ (as in some good reports) very soon to change the tide or we'll have earnings contagion. (ASML, a semi and ADTN for networking sector are earnings to watch Wednesday morning.)