Next week brings November's employment report, a critical bit of data in a week likely to be dominated by readings on the U.S. economy and the developing debt crisis in Europe.
Ireland's banks suffered a string of credit downgrades Friday—one reduced to junk-bond status —as speculation mounted that an EU-IMF bailout of Ireland could require senior bondholders to share the massive bill.
While the market pullback isn't even in the realm of a correction, worries that Europe's debt crisis could hurt the global economy are weighing on what otherwise could be a robust rally.
Here's the disturbing headline statistic: Portugal, Ireland, Greece, and Spain have sucked out 93 percent of the total liquidity taken from the ECB and other central banks.
Belgium faces an important test Monday, when it aims to sell between 1.5 billion euros ($1.9 billion) and 2.5 billion euros worth of bonds in an auction that will indicate the level of investor confidence in the nation plagued by political turmoil and high levels of debt.
Fears of contagion from the euro zone crisis were running high Friday but correlations between markets suggested investors were not as afraid of a systemic crisis as they were back in May and June.
European shares are expected to retreat on Friday after gains in the previous two sessions, with persistent concerns about euro zone debt problems and Chinese inflation seen putting pressure on the market.
Ireland is actually in a better economic position than other struggling euro zone states, Chris Watling, managing director at Longview Economics, told CNBC Thursday.
European shares were set to open higher on Thursday, adding to gains in the previous session, and after Wall Street rose on upbeat economic data.
As shoppers hit the stores this Thanksgiving weekend, investors are likely to keep bidding up retail stocks even as some of those stocks hit multi-year or even all-time highs.
Stocks finished the session sharply higher Wednesday ahead of the Thanksgiving holiday, following a handful of reports that offered some hope that the U.S. economy was improving.
Nations are left with old playbooks and fewer choices by which to resolve their respective problems. This means that time, devaluations, and debt restructurings might be the only way out for many nations. It also means the citizenry will require politicians that can think outside of the box and act with greater unity and resolve than perhaps they are used to.
Stocks were trading sharply higher Wednesday following a handful of reports that offered some hope that the U.S. economy was improving.
Things are getting better in the long term when it comes to the banks and Europe, H. Rodgin Cohen, senior chairman at the law firm Sullivan & Cromwell, told CNBC Wednesday.
The United States faces similar debt troubles to Europe's, yet its large size will spare it from spiraling into a sovereign crisis, Marc Chandler, global head of currency strategy at Brown Brothers Harriman, told CNBC on Wednesday.
Stocks added to gains Wednesday after a handful of economic reports pointed to an improving economy.
Ireland faces an uphill struggle to survive the turmoil currently plaguing it, and the rest of Europe will need to stand by the country if it wants to avoid the debt crisis spreading further across the region, Mohamed El-Erian, CEO and co-CIO of Pimco wrote in a commentary piece for the Financial Times on Wednesday.
Stocks were poised to open higher Wednesday after reports on the labor market and consumer spending pointed to an improving economy and as investors shifted their focus away from tensions between the two Koreas and European debt worries.
The euro is not in trouble but there are big imbalances in the euro area that need to be addressed, the Eurogroup's president Jean-Claude Juncker told CNBC Wednesday.
Fortunately, the important news from Spain is good and the recent market punishment, which has seen sovereign spreads to Germany rise substantially, is unwarranted.