Stocks HAMMERED After Germany's Giant Blunder: Here's What You Need To Know

Ski Crash

Stocks were wobbly all morning, but the situation in the eurozone went from uneasy confidence to nervousness in the blink of an eye after the German government idiotically announced a temporary emergency naked short-selling ban. It applies to certain bank stocks, and the new regulations will also go after bond and currency speculators. Naturally,t he move is being re as a gigantic no-confidence move.

But first, the scoreboard:

Dow: -115
S&P 500: -16

And now for some key stories:

  • Story #1 is Germany’s short-selling regulations. The ramifications of this move will certainly be felt overnight, and possibly for some time to come.
  • The euro has fallen to a new four-year low, following the German news. It is now below $1.23.
  • Goldman Sachs continues to get hammered, and the stock is now down to close to book value. Other financials were hit hard as well.
  • The one big winner today: Wal-Mart. The firm’s decent earnings helped carry the stock into the green all day.
  • Commodities sold off across the board. Oil is below $70 again. Copper did manage to rally back a bit. Gold slipped.
  • The BP oil slick is taking an ominous turn for the worse, with the emergence of a large “tail” extending to Florida.

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