Stocks are dropping over concerns over Spanish bank funding, lower China growth, IMF warning on Austria, SF Fed warning on US states, and strikes in Europe. (Follow the Dow here)
ECB 1 year lending facility of 442 billion euros comes off on Thursday and Spanish banks are seen to be the heaviest borrowers from it.
The Conference Board significantly revises lower its estimate of Chinese leading economic indicators from +1.7% to +0.3%.
The IMF warns about Austrian supervision of foreign currency loans.
The SF Fed says state fiscal crises will get worse before they get better.
Greek and Spanish unions are either striking or preparing to strike.
This string of overnight events all point to a Risk-Off theme that started yesterday with concerns over the ECB 1 year lending facility. This led to a drop in the euro against all major currencies and a new low against the Swiss franc. This 24-48 hour newsflow also occurred after the G20 and when the euro had recovered to its highest level since the end of May. So where does this leave us?