Global stock markets have not bought into the notion that the eurozone crisis has been effectively solved by leaders there. Stock markets, for the most part, have dropped around the world on expanded concerns that a new fund to stop contagion and fight debt trouble in Italy and Spain remains too small. But, in a bright spot, yields on what Spain had to pay in its 12-month auction today fell to 4.2% from 5.2% in November. The bond markets may have left behind some concerns that the stock markets have not.

A Jive IPO

The frenzy about social network stocks maintained itself as the IPO price for Jive Software priced more than 30% above its predicted range. The company will raise $131.6 million. It seems that the cratering of the prices of LinkedIn (NASDAQ: LNKD) and Groupon (NASDAQ: GRPN) after their IPOs has not undermined the value of the next wave of social network shares. The new big test of the market will be the IPO of Zynga, which will be followed by Facebook in the spring, according to media reports. Facebook could raise as much as $10 billion based on a $100 billion valuation.

The Fed’s Next Move

Economists predict the Federal Reserve will do nothing as it announces the results of its latest meeting. Some experts expect the Fed to begin to purchase debt, either mortgage paper or Treasuries. The economy is in enough of a recovery now, as far as the central bank is concerned, to make this action known as QE3 unnecessary. Some members of the Fed worry that another round of bond buying could trigger inflation. The Fed will do nothing until next year, if it acts at all. GDP for Q4 should be strong, which would support the bank’s current stance.

Global Hiring

Manpower Group released its quarterly survey of the global jobs situation. The employment firm’s report said that hiring in most economies, which includes notably China, will slow from the fourth quarter to the first of next year. The impact of the EU economic slowdown has spread all the way to Asia. China already has signaled that it will start another round of stimulus, in this case through lower rates and more liquidity passed through it banking system. But China cannot keep a strong pace of jobs creation if it has few export partners with good economies.

Douglas A. McIntyre

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