The Honeymoon Is Over And Markets Are Tanking

Markets have already come full circle in regards to the European bailout and the euro. The currency continued its bleed from yesterday, indeed turning the initial post-bailout-announcement pop into a sucker rally. EUR/USD has broken through $1.27.

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(Charts via Finviz)

Stock markets are having second thoughts as well. In Asia the Chinese CSI lost 2.01% and the Hong-Kong Hang Seng lost 1.37%, the Japanese Topex is down 1.33%. Over in Europe, France’s CAC 40 INDEX went down 1.52%, the German DAX Index lost 0.93% and the FTSE in Britain also lost 1.28%.

Gold is back up to near $1,210 while interestingly the U.S. dollar index is up almost half a per cent as well.

U.S. futures are pointing downwards, with the Nasdaq and S&P futures down 1%, as seen in the graphic below from Finviz.

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