Labor Monday Massacre for European Stocks
As US markets are closed for Labor Day, it got ugly in Europe today. The news got more gloomy over the weekend and today.
- Greece’s second bailout is in trouble
- Italy troubles deepened
- DAX was down more than 5% today.
- According to Belgian Nieuwsblad, the CEO of Belgium’s biggest bank has just resigned. Zero Hedge says, “As a reminder, Dexia is the one European bank that in the 2008-2009 period borrowed more money from the Fed than anyone else, and which we have discussed on several occasions in the past few months as being rumored to be on the receiving end of a variety of liquidity “complications” and countreparty concerns. Typically rumors of that nature, coupled with the sudden departure of the CEO, end up being proven as fact shortly to quite shortly. In other news, we are happy to announce the expansion of the PIIGS to BIG PIS following the arrival of the latest country to join the sovereign and bank funding crisis.”
- Certainly, there appears to be a run on the European banks – a run on the banks, by the banks, for the banks.
A bit before the close of markets on Monday
Europe, Africa and Middle East
|Euro Stoxx 50 Pr||2,107.27||-113.45||-5.11%||09/05|
|FTSE 100 INDEX||5,102.58||-189.45||-3.58%||09/05|
|CAC 40 INDEX||2,999.54||-148.99||–4.73%||09/05|
|IBEX 35 INDEX||8,066.50||-397.00||-4.69%||09/05|
|FTSE MIB INDEX||14,333.90||-726.88||–4.83%||09/05|
|OMX STOCKHOLM 30 INDEX||887.41||-44.69||-4.79%||09/05|
|SWISS MARKET INDEX||5,142.99||–216.68||-4.04%||09/05|