The curve ball of the day is definitely the S&P warning on Italian debt. Though remember, Italy has always been one of the PIIGS, so it’s absence from the headlines has been what’s weird.
In addition to diving Italian stocks, credit indicators are blowing out.
Via CMA, the country’s sovereign CDS are among the world’s top wideners.
Meanwhile, the 10-year spread to German Bunds is sharply wider as well.
Good thing for them, one of their own is set to be the next head of the ECB.