Wow, after yesterday’s big decline it looked like we might get a some kind of minor relief, dead-cat bounce rally. But nope! Things got VERY ugly late in the day. Bear in mind, this was the last day of the quarter, soBut first, the scoreboard:
S&P 500: -10.53
And now, the top stories:
- The big story has to be the failure of the market to not make any rebound following yesterday’s big 4% fall. Things were looking alright early on, but then slipped after the weak ADP report. There was a bit of a mid-day rebound, but the wheels came off in the final 40 min. of trading.
- The initial news out of Europe this morning was actually OK. In an auction, the ECB was forced to provide less liquidity than some had feared, and the euro initially rallied. Check out the 17 trades hedge funds are making right now >
- The bad news came at mid-day, when Spain got put on possible downgrade watch. Don’t miss: the full story behind the Spanish economic crisis >
- Following that Angela Merkel got her preferred Presidential nominee elected by the Bundestag by a slim margin, following two failed votes.
- The fate of financial reform is still slightly up in the air, as Scott Brown did not commit to voting for the new bill, even though the $19 billion financial industry levy was stripped. Get up to speed on The Dodd-Frank Act here >
- As for commodities and commodities, their behaviour was basically how you’d expect, though the dollar didn’t do anything special. Gold was up a little. The industrial commodities got savaged.