European Headlines are Driving Santa’s Sleigh

Pundits have referenced the traditional “Santa Claus Rally” to characterize the market moves this week, but it is the hyper-focus on Europe that continued to drive the markets – up and down.  The US equity markets had their best week in over two years with the S&P 500 up 7.4% and the DJIA up 7.0% for the week.  Events in Europe and improving domestic economic reports provided lift for the markets.     

US equity markets rallied on Monday, for the first green trading session since November 15th, and closing at the largest percentage gains since October 27th.  Markets were driven higher by renewed rescue efforts in Europe and a strong start to the holiday shopping season.  Bloomberg news reported that the European Financial Stability Facility (EFSF) could be allowed to insure bonds of troubled countries and guarantee up to 30% of each …