Until some resolution comes from Ireland related to concerns about their budget, the markets may have trouble finding any traction, especially to the upside. Below are some key dates related to the latest issues in Europe:
11/16/2010 - Meetings of the 16 euro-zone finance ministers. Spain bond sale.
11/17/2010 - All 27 EU finance ministers meet.
11/18/2010 - Spain bond sale.
12/07/2010 - Ireland’s government is due to present a budget to parliament.
According to the Wall Street Journal:
Observers say Ireland’s government is likely to fiercely resist pressure to raise its hand, because such a move would come with a loss of international prestige and economic sovereignty. The stigma of applying for aid from Brussels or the IMF would also further tarnish the country’s unpopular ruling Fianna Fail party, which leads a coalition that holds a razor-thin majority in parliament and could be forced to call early elections next year. And some officials from other indebted euro-zone countries worry that an early rescue of Ireland, several months before it faces a possible cash crunch, could backfire by triggering market pressure for other bailouts, especially of Portugal. (Full Story).
The U.S. dollar is up again this morning (8:30 a.m.), which continues to provide headwinds for commodities and precious metals.