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The pressure being placed on Portugal because of austerity measures has meant that a number of members of the government felt that their position was untenable in the face of mounting public disquiet.
The worry is that this public unrest will transfer to other countries that are currently struggling with the austerity measures imposed by the ECB and IMF.
The other issue slowly coming to the surface is that Slovenia has seen its ten-year sovereign debt yields move up to around 6.5%, and the country could find itself needing to be bailed out. This would see markets return to the self-fulfilling prophecy of bailouts witnessed in 2012.
Adding to the negativity in equity markets is that it’s likely a proportion of traders are looking to close-out positions ahead of tomorrow’s US bank holiday, as US traders will not have that opportunity ahead of Friday’s pre-open non-farm payroll figures. With the current risk-off sentiment, there can’t be many traders or investors looking for unnecessary risk.