Doom to Boom, Comments from EU Summit Lifts Markets (SPY)

Markets across Europe ripped higher overnight, as comments from the EU summit in Brussels create a roadmap to a closer monetary union in Europe. Investors are especially optimistic about the creation of a single banking supervisor involving the ECB that will help to recapitalize banks. Reports also say that banks in Europe will be able to receive capital directly from the ESM, which allows governments in Spain and Italy to avoid direct bailouts. Officials also hinted that harsh austerity imposed on ailing countries is coming to an end and that Keynesian-style growth measures will soon begin. In short, governments in Europe are planning to throw more money at their financial and banking problems and they will soon have several shinny new laws to help them accomplish this.

The FTSE, the DAX, and the CAC indexes in Europe are all moving higher today. U.S. futures markets are also moving higher. SPDR S&P 500 (NYSE: SPY) is expected to open higher by 1.6 percent.

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