“The market is in extreme fear,” Charles Berry, a fixed- income trader at Landesbank Baden-Wuettemberg, told Bloomberg. “It’s the problem in the euro area that drove that sentiment.”
“The outlook for Greece is almost completely unknown. Support for the country appears to be shaking. The market is starting to think the worst could happen. It’s as if policymakers are starting to prepare for that,” said Katsunori Kitakura, chief dealer at Chuo Mitsui Trust and Banking, in a Reuters report.
Also, French banks are bracing for a credit downgrade from Moody’s, according to a separate report.
SPDR S&P 500 ETF
Full disclosure: Tom Lydon’s clients own SPY.