With the Greeks unable to hug it out and new elections (as per Venizelos and Kammenos) all but guaranteed, the probability that Greece will exit just went to 11 on the dial. Markets hiccupped and plunged, giving up all the German GDP gains and then some. EURUSD traded back below 1.2800 - trading 1.2780 as we post, S&P 500 e-mini futures dumped 13 points now below yesterday's lows, Europe's DAX took a dive, and all European sovereign bond spreads tore higher dominated by Portugal, Spain, and Italy (+38-48bps on the week now). Credit spreads are gapping wider in Europe and the US. Commodities, which had been limping a little higher - on weaker USD and growth-hopiness we suppose - have reversed those gains with Silver and Oil underperforming. Treasuries and Bunds in lockstep and notably lower in yield - to lows of day.
EURUSD Plunge...
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and ES is making new cycle lows...
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and Sovereign spreads surging...
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Charts: Bloomberg