Germans To Markets: You Are Getting Ahead Of Yourself!
Comments out of Germany this weekend are weighing on stocks to start the week on Monday. It appears that finance ministers in Germany are seeking to temper expectations for a quick resolution to the Eurozone debt crisis, as the markets have taken on an extremely bullish tone over the last couple of weeks. In essence, it appears that the optimists may have gotten a little ahead of themselves.
German Chancellor Angela Merkel said that she expects a bailout package to be agreed upon on October 23, but played down any hopes that it would resolve the crisis. Her spokesperson said that "the chancellor reminds [everyone] that the dreams that are emerging again, that on Monday everything will be resolved and everything will be over, will again not be fulfilled."
German Finance Minister Wolfgang Schauble also reflected similar sentiments. While he said that European leaders will agree on new measures to stem the debt crisis, and hopefully calm the markets, he added that a permanent solution to the crisis in the near-term is unlikely.
The comments are being blamed for Monday's pullback in stocks. At last check, the Dow Jones Industrial Average has lost 175 points to 11,468, while the S&P has shed nearly 18 points to 1,207. The Nasdaq composite has lost 1.59% to 2,625.
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