Financials getting Crushed, especially FAS the ETF tracking financials.
Today's weakness comes on elevated concerns about spreading European debt problems after four Spanish banks agreed to combine in order to strengthen the financial system there as solvency concerns mount. This news stoked further questions about the extent if Spain's problems as it follows yesterday's report that the Spanish central bank had overtaken regional lender Cajasur. The major European markets are sharply lower (FTSE -2.6%, CAC -3.5%, -2.7%), LIBOR is up, while the euro is back near the 52-week lows set last week at $1.220/euro. Some of the riskier European markets are being hit the hardest, with Spain's IBEX -4.2%, Italy's MIB -4.4% and Greece's ASE -3.3%.