Summary:

• Carnage on the European stock markets

• Italian 10-year yield up over 15%

• Cryptocurrencies take a hit along with stocks

In spite of almost empty macroeconomic calendar investors cannot complain about the lack of motion in the markets. Turmoil in European politics sent stocks from the Old Continent plummeting. A risk-off attitude caused JPY and CHF to trade as the best currencies amid G10 basket. On the other hand Scandinavian currencies are the biggest losers. Industrial metals advance while oil trades mixed with Brent up and WTI down.

Turmoil seen across many classes of assets on Monday did not miss cryptocurrencies as they suffered quite appreciably overnight. The biggest loser proved to be Ethereum sinking as much as 14% in less than an hour while other virtual currencies made noticeably lower losses.

New executives of Deutsche Bank seem to take the Bank’s restructuring seriously as new developments in this topic are surfacing constantly. Now the Bank is said to cease equity operations in its Dubai’s unit. The move is in line with the CEO Christian Sewing ambition to focus on the European market rather than fight a losing battle with big Wall Street banks.

Italian and Spanish politics dominated financial markets yesterday, and it is unlikely that both topics would disappear any time soon. On Monday Italian President Mattarello asked former IMF director Carlo Cottarelli to forge a caretaker government after the president vetoed a joint candidate Savona put forward by 5SM/League over the weekend.

As the most important reports planned for this week are going to be released in the second part of it Tuesday seems to be the lull before the storm. However, as several European central bankers will deliver their speeches today we may get a glimpse of what is to come in the following days.