The yields on Spanish and Italian debt is once again on the rise. Earlier today, Spain and Italy both auctioned off €3.00 billion in new short-term debt. When yields rise it will usually cause the U.S. Dollar Index futures (DX-U2) to strengthen and that causes the stock and commodity markets to deflate and trade lower. The problems in Europe continue to increase by the day as Greece plays second fiddle to Spain and Italy.
Yesterday, credit rating agency Moody's downgraded the Spanish banking sector. This tells us that Spanish banks and most European banks could be very volatile today. Some other equities that could be volatile today include Banco Santander S.A. (ADR) (NYSE:SAN), ProShares UltraShort Euro (ETF) (NYSEARCA:EUO), Credit Suisse Group AG (ADR) (NYSE:CS), and the iShares MSCI Germany Index Fund (ETF) (NYSEARCA:EWG).