Markets in Asia sold-off in overnight trade, with Hong Kong's Hang Seng off 3 percent. Shares in Europe are sharply lower and U.S. futures point to a negative open.
The Spanish economy contracted by 0.4 percent during the second quarter, the Bank of Spain said this morning. That marked the third straight quarter of decline. Meanwhile, Spanish yields are spiking >
Greek leaders are set to announce billions of euros worth of budget cuts before officials from the European Commission, ECB, and IMF head to the country this week. The Greek government plans on closing and merging some 20 agencies as it streamlines itself to shave more than €11.5 billion from its budget.
The euro fell below $1.21 against the U.S. dollar for the first time since June 2010, touching a low of $1.2081.