Daily Futures Commentary May 12, 2010

May 12, 2010 Stocks Called Better; Volatility to Remain High U.S. Equity markets turned positive overnight after Spain announced new austerity measures. This action helped to ease worries over Euro Zone sovereign debt problems. One of the biggest fears affecting Wall Street has been the fear of contagion in Europe. This aggressive move by Spain sent a signal to investors that it was going to be more aggressive than Greece while making attempts to contain its budget deficit and debt expansion. On Tuesday, stocks markets failed to hold onto earlier gains and finished lower for the session. Speculation that a new U.K. government had been formed helped draw buyers into the market while triggering liquidation by weaker shorts. The news out of the U.K. was positive because…