European policy and politics will call the shots for markets in the week ahead, as the euro zone grapples with Spain’s banking crisis and the Greek election gets closer.
The U.S. will turn out a lot of economic news, but it will likely be overshadowed by developments from across the Atlantic, as euro zone finance ministers and leaders were to work on the weekend on finding a way to support Spain’s wobbly banks.
China over the weekend was also expected to report a series of economic data, including industrial production and retail sales, anticipated to be soft, given the People’s Bank of China‘s surprise rate cut Thursday.
“This week could be a roller coaster ride,” said Art Hogan of Lazard Capital Partners. Hazardous would be if there is no clear sign that a bailout for Spain’s banks is progressing, even if there is no formal deal reached. The Spanish government has said it is waiting to see an independent report on what funds its banks need before it makes a request. Meanwhile, the Greek election looms June 17, and that could help decide its fate in the euro zone.
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