Not even the highly anticipated debut of Facebook as a publicly-traded stock can make the investment community forget what ails the global markets.
Recent reports suggesting that the Greek banking system is nearing collapse - along with indications that Spain may not be too far behind – have investors in a mood to sell.
Bloomberg said $1 trillion in value has been erased from American equity values so far this month. And Reuters noted that the S&P 500 is down nearly 7 percent since May 1 amid worries that the worst days are still ahead for the eurozone, with each of its member states facing credit downgrades and the higher borrowing costs that would soon follow.
Meanwhile The Australian reported today that some analysts think Greece's exit from the euro could end up costing the eurozone $1 trillion before it's all said and done, worsening a deep recession for the continent and posing untold consequences for the U.S. And here in the United States, while things are slightly better, there is hardly cause for confidence. There are signals that the nation's largest banks are in the midst of a slowdown of their own with the trading environment continuing its weak showing and revenues sagging.
So in spite of all the optimism surrounding Facebook's intial public offering, it's no surprise that the social media giant was unable to shake stocks from their doldrums. At the time of this post, the major stock indices were essentially flat. Facebook's shares fizzled as well following a quick start, and other social media companies sank alongside them. After opening at $42.05, Dow Jones pointed out the stock fell to as low as $38 – its IPO price. Meanwhile Groupon and LinkedIn were each down more than 6.5 percent at one point.
Facebook's first day on the Nasdaq was supposed to be the big story today, and to some extent it is. But MarketWatch captures the essence of the bigger picture with the following headline: Facebook IPO Burns, Europe Smolders.As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio