European bourses continue to extend losses with the DAX down around 1% whilst US stock futures after trading in the black during the Asian session are all showing opening losses albeit in the minor category. Nervousness seems to be the bussword today. Sure we got a positive finish to last week but Europe appears to be in no mood for any positive sentiment to start the week preferring to run with the doom and gloom view of the world.
Personally I don’t want to get too bearish down here. Sure EUR/USD is going lower but this is not necessarily a bad thing for Europe or stocks. The pair needs to go down and talk about central bank intervention to prevents its slide is just that – talk. I think this week could be very sideways – a small savings bank in Spain being bailed out is not the end of the world.
