Photo: Flickr / pierpaolop
UPDATE 5:45 AM:
And markets are turning around nicely.
In the last several minutes, steep losses in Spain have been erased (the IBEX has gone from being down close to 2% to being off just less than 0.2%) and Spanish borrowing costs are off sharply.
Italy is now up 0.4% on the day.
US futures are still pointing to a slightly negative open.
It’s not clear what’s caused the markets to turn around. A not horrible Spanish bond auction may have helped.
That being said, there’s been a string of poor economic data out over the past several hours, including confirmation that Germany’s economy is starting to crack.
ORIGINAL POST: Looks like another rough morning.
After a weak Chinese Flash PMI and a series of clearly contractionary European flash PMIs, everything is lower today.
Crude oil is about to drop below $80.
US futures are down about 0.5%.
Gold is below $1600
And Europe is getting smoked. The Spanish market is down 1.6%. Italy is off 0.6%. Germany is down 0.9%.
So basically we’re seeing a combination of weak data, and perhaps some global reaction to yesterday’s Fed, which may have been a tad more hawkish than expectations.