[credit provider=”AP/Andrew Medichini”]
Markets are down.US futures are down modestly.
Much of Europe is off hard.
Spain is down 1.7%.
Germany is off 0.5%.
France is off 0.6%.
And Italy… down 3%.
Bank stocks in Italy are down over 5%.
The big story of the weekend is the rising political chaos, although it’s arguably overblown. Mario Monti will resign after passing a budget, and Silvio Berlusconi will run. Berlusconi’s chances are considered to be tiny, but in a recovering financial state, any disruption hurts. Borrowing costs in Italy are jumping.