It Is Ugly In Europe

Italian stocks are down 2.5%.

Greece is down 4%.

France and Germany are down, but a bit less.

A few things are going on.

One is that European GDP overall came in weaker than expected. Italy showed an unexpected economic contraction. France is flatlining. Portuguese growth fell 0.7%. The Greek economy shrank by 1.1%. So suddenly the economic comeback looks fragile.

Peripheral bond yields are shooting higher as well.

Meanwhile, opinion polls in Greece are showing gaining support for both the hard right and the hard left parties.

Combine all this with comments last night from hedge funder David Tepper, expressing nervousness about the market, and you have the recipe for an ugly day.