(June 11 2012)
Following a higher open, U.S. stocks turned mixed in early trading as enthusiasm over Spain’s bank bail-out began to fade.
Spain will received $125 billion from the other members of the eurozone for help to recapitalize its banking system. While stocks initially jumped on this news, they later scaled back their gains as investors realized that the bailout will not solve all of Europe’s problems as the region continues to grapple with high unemployment and the ongoing Greek crisis. Greece will conduct elections next week.
Fortunately, over the weekend China reported record exports, at $181.1 billion, and imports, at $162.4 billion, which gave it a bigger-than-expected trade surplus and helped to ease concern about a potential hard-landing for the country’s economy. A separate report showed inflation in China slowed in May, which kept the door open for more stimulus from the government.