The EU and ECB released a report that suggests the Portuguese economy will face a larger economic contraction than thought, resulting in a debt-to-GDP ratio of 115% in 2013. In 2010, it was 93%. Ireland may also have trouble getting its house in order as the Irish Fiscal Panel noted that 2012 growth has weakened and the country would need extra budget cuts to get to its target. Reports from the FT overnight suggest that Italy’s budget continues to cause consternation for which the Eurogroup recommends additional austerity – not politically tenable for PM Monti at the moment.
Not good news for Europe – but the market is taking it in stride. DJIA futures are down just 0.2%, while S&P futures are lower by 0.15%. NASDAQ futures are higher as a result of another 1.4% gain in Apple (AAPL) premarket trading – no doubt on news that Ashton Kucher will play Steve Jobs in a biopic. Crude futures, which saw large gains yesterday, pulled back – down 0.6% and back below $105 p/barrel.