The markets remained influenced by the unpredictability of key individuals, which this week included George Papandreou and Jon Corzine. In the case of Greece, its prime minister proposed putting last week’s bailout to a referendum vote, which surprised the markets, other Euro leaders and even members of his own party. Although Papandreou has since backed off the referendum plan, questions remain over his government’s ability to lead, as well as many aspects of the viability of last week’s bailout plan. The market continued to pressure Italy, whose yields hit post-euro highs, and are largely considered unsustainable. This opens the next chapter of the evolving euro saga. The ECB cut its rates by 25 basis points, while the Federal Reserve kept rates at historically low levels, signaling that it stands ready to launch QE, if required. Today’s jobs report missed expectations, although prior-month revisions and a lower unemployment rate were greeted positively by the market. There are limited economic releases next week, and we will continue to take our cues from Europe with the unpredictability of human nature driving headlines. Read the full commentary now.
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