Even as U.S. companies continue to report good earnings numbers, the EU remains mired in the consequences of the expansion of sovereign debt. The euro hit a four year low yesterday as members of the EU continue to disagree over the measures needed to bring some fiscal responsibility back to the region.
The drop in the euro is also beginning to affect China’s exports. The appreciation of the yuan versus the euro is starting to make Chinese exports less attractive, and Europe is China’s largest market. These concerns have led to recent volatility in commodity prices over concern that the strong growth in China may be slowing.
