Stock futures hit after European elections

Yahoo ^ | 5/06/12

[Libloather]

Stock futures hit after European elections
Reuters – 1 hr 29 mins ago

NEW YORK (Reuters) - Stock index futures fell after Greek voters trounced ruling parties in elections on Sunday, a result that put the country's future in the euro zone at risk, and as Socialist candidate Francois Hollande won the French presidency.

S&P 500 futures were down 12.3 points at 1,350.20 at 7:35 p.m. EDT (2335 GMT), suggesting a fall of about 1 percent when the U.S. stock market opens on Monday.

[Libloather]

You would expect something different after electing socialists?

[Terry Mross]

Are these people stupid or just getting into power so they can set up a luxury retirement for themselves and their children and grandchildren? It’s the only explanation I can figure out. Surely they know that eventually there won’t be any money left for their own paychecks. And that means ALL parties are cashing in.

[Lazamataz]

Socialists win, and the world loses. Looks like the global experiment with freedom and free markets is over.

[Gay State Conservative]

It’s about noon on Monday in Sydney and the Sydney Morning Herald says that markets are *way* down in the East.

[Aussiebabe]

At midday the stock market is down about 2% in Oz.

[Fee]

We can make all the commentary we want, but the 21st Century is the era nations like the US will learn a bitter lesson from globalization and free trade. Interlocking economies and financial systems with no protection against reckless bank speculations or gov borrowing will burn the US. France and Greece is the opening salvo for the destabilization of the Euro and EU. Our Fed Reserve has already extended credit to the EU via currency SWAPS whom the US taxpayer will be on the hook for if it fails. We gave Wall Street bankers via Fed Reserve while the US Treasury has the POTUS ear and looking the other way absolute power to determine our nations economic life framed in the interest of bankers and not Main Street Americans. If the Euro goes, so will many major US banks (despite their public assurances) due to the derivatives and etc they own via their parent holding companies as they attempt to use leveraging to speculate on the rise or fall of various EU debts. If MF Global is any blueprint of the future, in desperation to remain in the inner circle of high society, bank CEO if facing insolvency may take customer accounts and pay off their power creditors for the bad bets they made, and the US Treasury will look the other way as the digital thievery occurs and will claim they are still researching what legal grounds to arrest the bank CEO’s while the bank customers find their accounts empty and themselves last in line with other creditors in a bankruptcy proceeding. There is not enough money in the FDIC to cover the implosion of any one of the top five banks in the US. Worst case scenario calls for all top five being dragged down by derivative implosion (estimated at 55 trillion - US GDP is 14 trillion). If you have not prep, you need to get and store food that for at least six months, extra meds for perscriptions, definitely a gun and ammo, standby cash in case of bank holidays (ATM, credit card system is closed), precious metals to preserve your wealth and buying power when the currency is reset. You are running out of time, but it is not too late to start.

[Jack Hydrazine]

This is way better than the French waving the white flag! Do the French know how to pick ‘em or what?

[Gay State Conservative]

At midday the stock market is down about 2% in Oz.

Any word if it's just Oz or is it Tokyo,Hong Kong and Singapore as well?

[EEGator]

Nikkei -2.5%
Hang Seng -2.45%

[Gay State Conservative]

Yah,just checked...Singapore's down about 1.6%

[EEGator]

Yea Socialism!

[Gay State Conservative]

Yea Socialism!

The FTSE and Dax should be fun to watch tomorrow.

[SunkenCiv]

Thanks Libloather.

Greek voters trounced ruling parties in elections on Sunday, a result that put the country's future in the euro zone at risk, and as Socialist candidate Francois Hollande won the French presidency.

Kind of a good news, bad news thing.

[Errant]

Zero Hedge post:

While it is still early in the overnight session, initial indications are for a full spectrum Risk Off market. In fact, S&P 500 futures (ES) have not fallen this fast over a two- or three-day period since the third week of November last year. As many may remember - a few days of drops like this took ES from 1260 to 1136 in a week but more importantly was followed very quickly by a massive and coordinated Central Bank intervention that ripped ES over 6% higher in an overnight session - sparking the entire rally of the last six months as it appeared the central bank put strike had been dragged higher. Admittedly the two-day fall so far (while the largest in almost six months) is still small in context, it would appear the world is waking up to the true event risks of a debt-saturated fiat system going through its death throes. Back of the envelope would suggest we need to drop to 1285 or so on the S&P before the same kind of hit-the-big-red-central-bank-panic-button kind of move comes into play. Sure enough, Gold is only very modestly lower (-$3 at $1640) so far in the face of a rip higher in USD and broad liquidation everywhere else - perhaps the patience of sound money will be paid off once again.

ES fell with a similar velocity in mid November (red rectangle) - soon after (green oval) the central banks of the world went crazy...

and sure enough - while the world is selling off pretty hard this evening, gold is - well - not...

Of course with Treasuries yet to open - perhaps Gold is the only safe place (especially with AAPL having collapsed in on itself in recent days).

Charts: Bloomberg

[EEGator]

I’ll be watching.

[tet68]

Market falls after socialist elected.
Wow, now there’s a surprize.

[WaterWeWaitinFor]

Very Interesting.
Save for later.

[Errant]

Last November, coordinated Central Bank intervention did little for the price of Gold. If we get intervention again this time, since Gold seems to have put in a bottom, we might see a significant spike.