Most of the major European indexes closed modestly higher on Monday, the first day of a week that includes a highly anticipated EU summit, and a day after Gavyn Davies featured a sobering chart in his FT commentary, The Anatomy of the Eurozone Bank Run.
The EURO STOXX 50 index gained a quarter of a percent, and the Bloomberg table of European Stocks, which includes the STOXX 50 and the eight largest country indexes, showed only two declines for the day.
But the indexes highlighted in red are for the two countries that pose the biggest risks to the Eurozone. On May 9th, Spain’s IBEX 35 slipped fractionally below its historic March 2009 low. Six of the eight subsequent sessions have been losses.
Italy’s Milan index is fractionally higher than its 2009 trough, but the index down 24% since its 2012 interim high on March 19th.
The Athens Stock Exchange General Index is too small to be included in Bloomberg’s main list of European indexes. It fell 1.01% today but is 1.5% above its 20th century low set on May 17th.
The headline story today is national obsession with Facebook IPO. But a more important story of the week will be the outcome of the EU summit in Brussels.
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About The Author
My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.
My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.
Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.
Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.