Due to the Memorial Day holiday, U.S. financial markets were closed on Monday. During this week, investors will be waiting for key U.S. economic reports as well as the alarming possibility of Greece’s departure from the euro zone.
Exit of Greece is rapidly changing from an idea to a distinct possibility. Emergency plans are prepared for the event of Greece’s exit from the euro zone. Investors might have to wait till Greece holds elections on June 17. It is said that if companies and central banks are not getting ready for a Greek exit then it will be a grave error.
This week’s main releases include the May non-farm payrolls report, gross domestic product and consumer confidence which might provide hints to the direction of U.S. economy.
Equities will be affected by any major developments in the troubled region. For that reason Europe will be under radar screen. Apathetic U.S. data with rising concerns about Europe are the main reason for drop of the S&P 500 by over 5 percent during May.
The hidden advantage might be for U.S. dollar-denominated assets and the U.S. dollar. Capital inflows might help stabilize U.S. banks. It is quite possible that this dynamic might spark a rally in the U.S. bourses.
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