U.S. equities got off to a weak start all in part due to political corruption worries in Europe. Specifically, Rajoy in Spain and other cabinet members have been accused of being on the take and their are calls for his resignation. This is creating fear that perhaps the recent bailouts and structuring of finance could fall apart. As well all the plans put forth recently to help Spain recover and grow are considered to be up in the air.
Yields in Spain and Italy have gone parabolic. U.K.’s chancellor is calling for a portential break up of the banks if they can not follow recent guidelines to fixing the mess within the system.
Merkel has tried to calm the markets holding a meeting with Rajoy and stating she has confidence in Spain…
So far the DOW is off 110 and it does not appear to be more than a garden variety pullback, but we will not know until the close. The S&P is haning onto 1500, but should find strong support between 1470 -1480 if we are to have a continued sell off in the coming days and weeks.
Risk off has most equities down along with precious metals and oil.
[youtube://http://www.youtube/watch?v=iZV7akaSo0s 450 300] If you enjoy the content at iBankCoin, please follow us on Twitter
