European Stock Indexes Slide Deep Into The Red
All of the leading European stock indexes have been declining since the opening bell rang at the New York Stock Exchange. Fear is starting to spread in the market as many investors are expecting some European countries to need another bailout. The Institute for International Finance warned that a disorderly default by Greece would likely force Italy and Spain to seek financial aid. Portugal and Ireland have also been rumored to need a second bailout and everyone is now wondering where this new money is going to come from. The European Central Bank (ECB) has already loaned out over $1 trillion to European banks via its Long Term Refinancing Operation (LTRO).
Traders and investors can watch for weakness in many of the European stock indexes. ETF's such as the iShares MSCI Italy Index ETF (NYSEARCA:EWI), iShares MSCI Spain Index ETF (NYSEARCA:EWP), iShares MSCI France Index ETF (NYSEARCA:EWQ), and the iShares MSCI Germany Index Fund ETF (NYSEARCA:EWG) are all trading lower by over 3.00 percent. The EWG is considered the strongest European stock index at this time. Traders can watch for intra-day support around the $21.90, and $21.35 levels.