Dow: Europe Leads "Risk On" Trading

Macroeconomics will probably be driving the market today (barring another event surfacing), and it's a "risk on" day as news emerges out of Europe that Greek tourism is better than expected this year. Perhaps the news that European authorities are in talks with the Spanish government to craft a bailout -- the details of which are expected to be released next Thursday -- also has something to do with it. American depositary receipts of Spanish lenders Banco Santander (NYSE: SAN  ) and Banco Bilbao Vizcaya (NYSE: BBVA  ) were up almost 2% and 3%, respectively, during the first half-hour of trading. The S&P 500 Index (INDEX: ^GSPC  ) and the Dow (INDEX: ^DJI  ) are in positive territory.

The U.S. Federal Reserve released its data-rich Flow of Funds report covering the second quarter yesterday. The report shows some positive developments. For example, the aggregate total of credit market instruments held by depositary institutions rose 3.8% year on year -- the fastest pace in four years. That suggests that credit is making its way to businesses and individuals, and it also increases the likelihood that QE3, the Fed's latest bond-buying program, will be effective. One bank will earn bumper profits as credit expands, and it's "The Only Big Bank Built to Last." Find out which one it is in The Motley Fool's limited-time free report.

Fool contributor Alex Dumortier holds no position in any company mentioned. Click here to see his holdings and a short bio; you can follow him @longrunreturns. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2026494, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:34:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement