S&P, Dow Give Up Overnight Gains As Italian Markets Plunge

One leg of the overnight ramp in US stocks has just broken as Italy's refusal to budge with Brussels has sent Italian bond (prices) and stocks tumbling, erasing earlier gains and dragging US stocks down...

Italian bond risk is now higher than Friday's close...

And Italian stocks are lower...

Led by Italian banks plunging...

The Euro is tumbling...

And that has sparked derisking in the overnight exuberance of US equities... The Dow and S&P have given up all overnight gains...

As one veteran European FX trader told us "this is far from over."