The euro rejected a fresh 2014 highs against the dollar, after strong non-farm payroll data boosted the U.S. currency.» Read More
The pan-European stress tests on the banking sector were not tough enough to reflect future worsening conditions for the continent's economy, Nouriel Roubini told CNBC.com.
"There are more problems coming in the currency markets, pension funds, US states and cities, etc. None of this was considered although the latter is only indirect for the European banks," the famous investor told CNBC.com.
Despite the recent rally for equities across the world, the bonds are winning the battle for investors' cash and will continue to do so according to Robin Griffiths, a technical strategist at Cazenove Capital.
With the European bank stress tests out of the way, investors may shift their focus to what's got the stock market perking up in the last couple of days.
Most of the largest European banks, are well capitalized but these results "can't begin to tell the full story," Cohen said.
The over-under for the European bank stress tests are 12 out of 91 fail the tests and need capital injections. Unlike the US stress tests, the European tests didn’t tell us the metrics or guidelines before the tests were run. This has generated uncertainty over exactly how these banks are going to perform.
"They have a huge informal economy. Informal economies don't pay taxes but people eventually show up as they get older looking for pension and looking for health care," Edward Hugh, nicknamed "Europe's prophet of doom," told CNBC.
Wall Street will be closely watching the results of the European bank stress tests on Friday even as the deluge of earnings continue.
Friday at noon, New York time, 91 banks in Europe will reveal how strong they would be if the region went back into recession over the next two years and the sovereign debt they hold plunged in value.
Fresh economic data Thursday could feed the market's phobia about a weaker economy, ahead of another round of testimony from Fed Chairman Ben Bernanke.
Stocks were lower on Wednesday amid weakness in techs and retailers. Barry Knapp, head of US portfolio strategy at Barclays, shared his market outlook.
Apple proved once more its iProducts make for a powerful earnings machine, but that may not add much juice to tech shares Wednesday.
The financial crisis might have sapped Europe's growth for a long time, and there are fears that the slowdown is permanent, Polish central bank governor Marek Belka told TVN CNBC Tuesday.
Whereas critics of the US bank stress tests complained that there were too many details, the concern about European tests is that there are too few.
IBM's disappointing second quarter results will compete with a barrage of corporate earnings reports ahead of Tuesday's opening bell.
The currency’s resurgence is good news for these companies. Luckily for investors, the analysts haven’t yet caught on.
The market is set for a strong earnings season with corporate guidance giving a clear indication that surprises will be on the upside, according to Saxo Bank.
After news of the Goldman settlement swept away a wave of uncertainties, focus on Friday will return to economic data and earnings from Citigroup, Bank of America and General Electric.
These problems needed to be solved before investors could trust a move higher, Cramer said.
The dollar index was down more than 1 percent, and the dollar was falling against the euro, yen and sterling. Improving news out of Europe and a short squeeze are also combining to drive the euro more than a percent higher against the greenback, towards its highest levels since early May.