Another wave of risk aversion swept through global markets Thursday as Dow futures fell over 100 points and the Eurozone debt contagion appeared to quicken its spread to Italy and Spain.
SPDR S&P 500 ETF (NYSEArca: SPY) fell more than 1% in preopen trade.
In Europe, the iShares MSCI Italy (NYSEArca: EWI) was set for a sharply lower open as a speech by Prime Minister Silvio Berlusconi failed to soothe markets. [Italy ETF Feeling Heat of Debt Crisis]
An ETF tracking Germany was also active before the bell following soft economic data. [Germany ETF Lower on Economic Worries]
Wall Street’s fear gauge was set to rise Thursday – iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) climbed 3%. [Volatility ETFs Thrive in Traders’ Market]
In currency markets, a Japanese yen ETF plunged 3% after the central bank intervened in currency markets. [Japanese Yen ETF Plummets]
In precious metals, SPDR Gold Shares (NYSEArca: GLD) rose 0.8% as investors grew increasingly worried about the sovereign debt crisis in Europe. Gold futures traded over $1,680 an ounce at one point Thursday morning.
Full disclosure: Tom Lydon’s clients own GLD.