Not surprisingly, the action — following a weekend of worry about the US and of Europe — is decidedly risk off.
Just over an hour ago, the ECB announced a renewed bond buying program, clearly focused on Italy and Spain, but obviously this alone wasn’t enough to prevent early damage.
Gold has surged to $1691/oz, a new record.
S&P futures are off about 2.7%. Markets have come back a bit, as US futures are now off less than 2%. A promise of liquidity from the G7 countries is helping things.
In early Tokyo trading, the market is down about 1.5%.
So far, not total bloodshed.
Here’s the chart of gold instantly spiking.
For a fuller guide to the downgrade and its market impact, see here.