So rumor was the largest contributing factor to today’s market movements. From the open we began to continue yesterday’s trend and then the rumors began to fly. The rumor that the SNB (Swiss National Bank) was going to buy Italian bonds was the “major” market mover today. As time passed the rumor was revealed to be unfounded and the markets hit the brakes. After that we began to hear that Greece, yes Greece again, was in talks outside the IIF (the Institute of International Finance) to make a deal on their debt. Things stayed pretty much flat on that until we found out that the actual meaning of that wasn’t really a good thing. What it amounts to is that Greece was in talks to renegotiate their bailout to try and get a better deal and avoid a larger hit.
Bottom line, nothing really happened. We closed slightly down which isn’t terrible but it was widely reported that this week, the week of thanksgiving, was the worst week in the markets since the 1930’s. From here I expect more downside to come as S&P and Fitch (even though Fitch retracted) downgraded Belgian bonds from AAA to AA+ (or was it AA+ to AA? Don’t remember) today ahead of bond auctions next week and that we ended up forming a gravestone doji (bearish signal). Things really are not looking good for markets.
oh, Portugal too.
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