By Markets Media

On Notice: Europe

Correlations be damned as equity traders shrug off the European Union’s troubles in favor of driving their own stock markets higher.

Last Friday, the news was grim. UK Prime Minister David Cameron had essentially resigned the country from the euro, fueling speculation that the UK would leave the EU once and for all. Meanwhile, member states seem to be unable to come to a complete consensus on new rules and sanctions for countries that are unable to control their sovereign debt.

And even more confusing is exactly how big a role the European Central Bank (ECB) and European Financial Stability Fund (EFSF) will play in solving the problems that plague countries like Greece and Portugal. An inability for foreign banks to finance sovereign debt will create a headache for most countries throughout the EU.

So where will these countries peddle their bonds next? If a domestic buyer does not exist, than surely these states will turn to countries like China, Japan and even the U.S. Countries that historically have been large purchasers of foreign sovereign debt.

Whether or not these measures will make a difference and halt the collapse of modern day Europe remains to be seen.

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