WAKE UP! Spreads Are Wider In Europe, And Markets Are Getting Hammered

alarm clock

Photo: Alan Cleaver, Flickr

ORIGINAL POST: Rough start to the day so far.Spreads are wider across the board in Europe — including in Spain where a new conservative government just won national elections decisively — and markets are getting hammered.

Italy’s FTSE MIB index is down nearly 3%.

France is down 2.5%.

Germany is off 2.8%.

In the US, pre-market futures are off 1.5%.

There’s not a ton of “news” really. Some might be inclined to blame the reported failure of the deficit Super-Committee, since that has raised the odds of another sovereign downgrade in the US.

UPDATE: One thing that may not be helping: French paper Figaro (via SeekingAlpha) is reporting that Moody’s has made some warnings about bad growth being bad for the French sovereign rating. Due to France’s size, and its role in funding the EFSF, the country’s AAA-rating is a major pressure point for the whole area.

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