Europe Optimism Cheers Credit Markets: Art Cashin
CNBC.com
| 05 Dec 2011 | 01:33 PM ET
U.S. markets may be up on a proposed European Union treaty introduced by the leaders of France and Germany, but Art Cashin thinks investors should "cross your fingers" anyway.
"So far everyone wants to stay with the optimistic side, and the good news is the credit markets are buying into this a little bit," the head of UBS Financial's floor operations told CNBC, referring to this Wednesday's meeting of EU leaders.
The fact that yields are "down on Italian paper means they think something will get done," he added.
But there are still 17 nations involved in the European Union and it's "hard not to see…it will be tough [for some nations] to give up some sovereignty," he warned.
"Do the Greeks want to be dictated to? Is there an easier way out? If this goes to referenda it's not going to work. They all relish their particular culture and habits but something has to be done."
The U.S. also has a big interest in Wednesday's meeting, Cashin said.