Market Update as Risk Off contagion spreads in Europe

Published 15 November, 2011, 10:30, CEST+1 | By the trader

Markets have been selling off for the past 30 minutes. Renewed fear of the Italian disease is spreading in Europe. Italian spread spiking higher, banks shares selling off aggressively, while the yield curve is inverting. Just as we wrote earlier this weekend, “Italy’s problems are not solved by Silvio resigning”. The Euro is trading close to 1,35, while the MIB index has fallen 6,2% compared to yesterday’s highs…With volumes rather light, expect volatility to stay high, as no “serious” investor can manage to hedge effectively. Important charts below.