Sure Europe may be a positive factor for the world market, but one thing you definitely need to think about is funds maybe pulled out from the US market and redirect to the european market. Europe maybe a positive factor to the world economy, but may not be a positive one to the US. Now we are head to head to compete with Europe.
There are other factors also. If Europe gets stronger and their currency rises against the dollar, it will be great for US companies. Remember that Asian problem -- how it negatively impacted world markets for a while. The worry was that the dollar going up would hurt exports, causing profits to decline. Since that drop against the yen, I noticed how positive the big techs got. MSFT,INTEL,CSCO, DELL, CPQ, IBM don't have much competition over there. Maybe european telecoms could get bigger and become more of a threat.
Even a coca cola will benefit, not necessarily from only higher unit sales but also from a better exchange rate.
My understanding is that if Europe goes up, the US markets will as well -- money could come out of money market funds, bond funds and new contributions. I think positive news in Europe or Asia will also add a pop to US markets. So far any good news in Asia and Europe had this effect up (at least until now).
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