Sell-Offs Spread Across Global Markets

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July 10 (Bloomberg) -- Deutsche Bank Securities’ Alan Ruskin discusses what’s behind the global sell-off of stocks on “In The Loop.” (Source: Bloomberg)

Selling off.

Triggered by concerns coming out of europe and portugal.

Try us now on what sparked this fear is alan from deutsche bank.

There are some worries about banking and banks in portugal.

One was suspended on the stock exchange.

Now there are questions about whether we could see a bank run in portugal.

Are we even at that level?

Very tough for me to say.

We are not commenting on things like bank runs.

I would say the -- this -- at least from our perspective in the u.s., i do not think that this is systemic of any obvious risk.

The big problem is maybe that the markets have become a little more complacent and it is lower across the market.

It does not take much to get markets worried.

Particularly in the u.s., they are having significant offsets.

That is very true.

The question raised here is whether we are getting too complacent in the united dates and whether what we are saying in europe will pose a risk in the u.s.. yes, you know, the main direct risk is slower periphery growth.

That is in the perforate of europe.

-- periphery of europe.

There are also offsets in europe.

A lot of the flow into the core european bond market -- those markets are actually recipients of funds.

So, if those markets are rallying, they are coming down in yields.

There is an offset in the european growth and a nominal effect to american growth.

The bigger concern is that it is not taking a lot to get investors concerned just because volatility has been so low.

Why has the euro then not gone down as much?

It is a reputation of being bulletproof.

Some of this relates to the internal flow.

Because a lot of the bond flow is moving from the periphery to the core european markets, there is no foreign exchange transaction.

That said, the currency market is a little on it.

The currency pair that i am seeing is euro-yen.

Dollar-yen is a pretty important levels.

The euro-yen could break, no.

That is going to watch.

Alan, thank you for joining us.

That does it for today on "in the loop." tomorrow, ken feinberg will be joining us.

He is handling the competition for victims of the general motors crashes.

He has said that he will pay whatever it takes to compensate the victims of the general motors'faulty cars.

That is tomorrow at 8:00 eastern here on "in the loop." ?

This text has been automatically generated. It may not be 100% accurate.


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