This morning, the major stock indexes in Europe and the United States are trading sharply lower. The S&P 500 Index e-mini futures (ES Z1) are starting the day lower by 30.25 points to 1243.25 per contract. The catalyst for the decline today is once again the European debt crisis, the Italian debt yields are soaring higher. The bond market does not lie, it is telling us that there are some serious problems in Italy and the rest of the European Union. Yesterday’s Berlusconi bounce has been completely whipped out this morning before the opening bell.
All of the leading financial stocks are trading sharply lower this morning. Many traders and investors are now wondering what financial institution has the most exposure to European debt. Leading financial stocks such as Morgan Stanley (NYSE:MS), Jefferies Group Inc (NYSE:JEF), Goldman Sachs Group Inc (NYSE:GS), and UBS AG (NYSE:UBS) are all declining before the opening bell at the New York Stock Exchange.