Stocks are taking a beating this morning one day after rallying 1% on news that Italian PM Berlusconi was stepping down. Today the news out of the country know for wine and food is on the other end of the spectrum. The yield on Italian bonds shoot above the important 7% level as fears of a default spread around the globe. The spread between the Italian bonds and the German bunds is at the highest level since the introduction of the Euro.
First it was Greece, now Italy, could France be next? The spread between the French OATS and German bunds spiked to their highest level post-Euro this morning. Is France really next on the list? Or are investors listening to their emotions and fear versus sanity? I believe the fear has gotten a hold of investors this morning and France just happened to be next on the list. In all seriousness we all know the European nations have issues, but with Italy, Spain, Portugal, Ireland, Greece, etc. already with high yields - France was simply the next victim.
ETFs to Watch: $EWQ $EWI $IEV $EUFN $BWX
My call heading into the open today is not to panic and let the market open lower (currently indicating down over 200 points on the Dow) and see how things look around lunch time.
One bright spot this morning is Gold. The SPDR Gold ETF $GLD is indicating it will open higher by about 0.5% after losing some luster yesterday. Today it is a safe haven play once again.
I will post more updates throughout the day.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
No comments:
Post a Comment