DEBT FINANCING. More volatility stocks

NEW YORK (Reuters)-investors will handle more turbulence surrounding the problems Europe's deepening debt next week and the prospect of another round of gloomy data about the faltering u.s. economy.
More volatility is almost guaranteed after exiting the high-ranking German on European Central Bank and rumors circulated throughout global markets that Greece will default this weekend. Greece, later called market speculation the rumor designed to hurt the euro.
Recent business models and market activity options also suggest coaster ride August will keep pace throughout September.
The sudden resignation of Juergen Stark of the ECB on Friday came after a conflict over the Bank's policy to buy government bonds to fight crisis of eurozone debt, raising questions about a program that has been a stabilizing key market in recent months.
"You can tie our stock market directly to European banks-the problem they have is the exhibition of sovereign debt," said Jack de Gan, Chief Investment Officer at the port Advisory Corp. in Portsmouth, New Hampshire.
In a week for light gains with only electronics retailer best buy Co Inc and diversified manufacturer Pall Corp., & S P 500 companies set for the report, investors will be eye a lot of data for any signs that the economy regained its footing. Economic readings over the past two months has left little reason for optimism.
But the euro zone, where a sovereign debt crisis of two years has unsettled investors around the world, will be the real focus.
Gan noted the critical role of ECB potentially solve the problem of sovereign debt, highlighting the implications for global markets in all reports of internal turmoil.
"Europe matters now-the resignation of the ECB Trichet's maintenance fees flat, as opposed to final cut," said Phil Orlando, equity market strategist at Federated investors, Chief, in New York. "There are rumors that I can't justify, but rumors are still out there that this is weekend Greece goes bust.
"As surely, Europe is going to capture our attention," said Orlando.
Data on tap for next week include retail sales along with price indexes and producer price to consumer August. Also expected are regional manufacturing surveys by the Federal Reserve Bank of Philadelphia and the New York Federal Reserve Bank, which showed the contractions in factory activity last month.
"Each data bit theoretically Gets-on the way to understand what is the true state of the economy. I expect the reaction to rule the day, "said Kim Caughey Forrest, senior equity research analyst Fort Pitt Capital Group in Pittsburgh.
At the same time, the benchmark S & P 500 has been mired in a range of about 100 points-between 1,120 and 1,220--for the past month, leaving the market susceptible to large variations on a daily basis.
"We are just sort of about it nowhere zone," said Ken Polcari, director-general in ICAP actions New York.
"We have not broken to the downside, but nor can we have broken it upwards. So you will continue to get is this erratic market until at some point, he'll have to leave one way or another. "
The continuous increase of the CBOE volatility index also points to large movements in the market. The index rose nearly 20 percent to complete the level 40 for the first time since August 26, indicating increased investor skittishness.
"I expect high volatility next week, sharp swings to ascendants and descendants. The VIX is quite high and very high, "said Randy Frederick, Director of trading and derivatives in Charles Schwab & Co. in Austin, Texas.
"When the VIX is climbing up the way it is, that often means that the place is going up too."
(Additional reporting by Angela Moon and Rodrigo fields; Edited by Leslie Adler)

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