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Global Economic Market Rattled After European Elections
Pinnacle Digest writes: In this article Chris Ciovacco explains the wild ride the S&P went on in overnight trading. Two new leadership changes in Europe (France and Greece) have caused investors reason for concern. France is once again controlled by a socialist regime aimed at taxing its millionaires up to 75% on income over 1 million euros.
With Sarkozy ousted, the austerity tag team of himself and Angela Merkel has been halved. France’s new leader, Francois Hollande, a socialist concerned with taxing the rich and boosting growth through spending, could create significant problems for Europe’s financial reform.
Germany has already promised it won't back France's new leadership if they try and cut austerity plans. Click here to read.
in Greece, no government has a majority, with multiple groups now having a say on whether or not the country will renege on its promises made in order to receive its multiple bail-outs.
The one shining light in Europe, which was able to cut the S&P’s overnight losses substantially, came from better than expected factory orders in Germany. Yet again, the German economy saves the day in Europe...for now.
Ciovacco also points to the third danger in the markets at this moment. Technical barriers are on the cusp of being tested once again. This could lead to further downside in the market.
Click here to read Chris Ciovacco’s article