The drama reached an apex yesterday, when the U.S. market shot upwards after it received news of the European bailout. But it quickly dropped back down this morning after confidence in that bailout lagged. All told, the Dow went up 3.9 percent yesterday, and declined .6% today. The Stoxx Europe 600 Index suffered more, rising 7.2% yesterday, and then falling 1.7% percent this morning.
Marek Belka, the director of the International Monetary Fund’s European department, told Bloomberg that the “unprecedented” European bailout package isn’t going to work as a long-term solution. Combine that with inflation in China and faltering commodities, and the investing outlook for any of the world markets isn’t looking particularly rosy.