Monday Morning: Going Lower

8:45 AM: At this hour, the S&P 500 futures are pointing to a lower open, and I suppose you could pick your poison with regards to the cause. Word is spreading that the Congressional ‘Supercommittee’ is on the verge of failure, which really shouldn’t come as a surprise to anyone who’s been paying attention lately. Of course it wouldn’t be a market open without talking Europe. Equity markets are falling in the Euro zone, with the DAX lower by 2.29%, and the CAC40 off by 2.27%. Bloomberg is reporting that German growth will grind to a halt next year as a result of the current sovereign crisis. According to the WSJ, EU officials are floating the idea of joint-issued Euro bonds to stem the crisis, but Germany’s opposition will prove a formidable headwind. Another fear taking center stage today has Moody’s warning about a possible France downgrade, which would send beaten-down markets even lower. Commodities continue to show weakness, with gold, oil, silver, and copper all falling early in trading. The US 10-year Treasury is yielding 1.969% this AM, signaling further weakness in stocks. Best of luck out there, and on with the links…

  • Supercommitte is a dud. (Reuters, WSJ)
  • Drug Deal: Gilead drops $11 Billion to buy Pharmasset. (Dealbook)
  • How US billionaires avoid the IRS. (Bloomberg)
  • Contagion spreading as cash held at ECB peaks. (Zero Hedge)
  • Economic schedule this holiday week. (Calculated Risk)
  • Richard Rhodes’ ‘ridiculously simple’ trading rules. (The Big Picture)
  • Pressure now on Germany for Eurobonds. (Credit Writedowns)
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