Moneywise24 Personal Finance

After a period of recovery, stock markets fell sharply this Monday, as fears on Europe’s debt crisis keeps dominating. Whereas the problems around Greece have been postponed, new fears arise that Italy, Europe’s second largest economy, might might fall into a debt crisis.

According to Reuters, the IShares MSCI Italy Index Fund, dropped by 4.9% to a value of 15.63 USD (read the full article here). Additionally, the FTSE Italia All-Share fell by 4.33%. One hour after opening, the Dow Jones fell by 1.45%. The fear, that the debt crisis may expand into the entire European region, is clearly dominating.

Especially finance-related stocks have much to endure today. Banks and insurance companies, which are largely sensitive to the global economy, fell sharply. Again, fear seems to dominate the market, at least on the short-term, while all eyes are looking toward the beginning of the Q2 results announcements. Alcoa is traditionally starting the season later today.

Personally, I am putting a hold on taking on any new positions. I will sell any investments at my stop-loss immediately, and generally simply lay back and watch the show. The Q2 results will surely be very interesting, but it will be more interesting whether companies will make statements to their expected Q3 and Q4 results.