For this week what we can expect, that mite have impact on the markets behavior is…
Monday – Spain bank deal developments. Spain expected to formally request bank rescue, complete with a memorandum of understanding with key terms, set for July 9th.
Friday – German ESM (European Stability Mechanism) Ratification: Germany’s Bundestag will vote on EU fiscal compact and permanent rescue fund (ESM). A two-thirds majority is needed.
Italy Bond Sale: Italy has a critical auction of benchmark 10 year notes. A successful auction goes a long way to calming markets about Italy; a failed auction could quickly accomplish the opposite.
Other Calendar Events – US new home sales, S&P/Case-Shiller housing index, Conference Board consumer confidence, durable goods and pending home sales from Monday to Wednesday.
Again this is all about Europe… and how it deals with the various countries that in crisis…