--- title: The Trouble With Europe description: The Trouble With Europe --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/the-trouble-with-europe#popup-newsletter) #### Want the latest news on securities markets -- FREE? Sign up to receive exclusive articles on topics including: - Equity market structure - Profiles of buy-side investment firms - The evolution of multi-asset-class trading - Regulation and its implications for markets - The search for liquidity in fixed income markets - The convergence of fintech and capital markets Select one or more newsletters you would like to receive: menu [![Markerts media](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/header%20logo.svg "Markerts media")](https://articles.marketsmedia.com/) - [Europe](https://articles.marketsmedia.com/tag/europe) - Europe - The Trouble With Europe Search - [Home](https://articles.marketsmedia.com/) - [Trending](https://articles.marketsmedia.com/tag/trending) - [Featured](https://articles.marketsmedia.com/tag/daily-email-feature) - [Sectors](https://articles.marketsmedia.com/tag/sectors) - [From The Markets](https://articles.marketsmedia.com/tag/from-the-markets) - [AWARDS](https://articles.marketsmedia.com/tag/events) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Newsletter](https://articles.marketsmedia.com/the-trouble-with-europe#popup-newsletter) Hide search Search - NewsLetter ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/trading-up-occ-iex-select-board-members-citadel-lands-lieblich-573x379-Jul-07-2022-09-34-11-57-AM.jpg) [ON THE MOVE: Citi Hires Artie Ambrose;...](https://articles.marketsmedia.com/on-the-move-citi-hires-artie-ambrose-natalie-a-brown-to-mesirow) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_445735906_L.jpg) [Trading Adapts to ESG and Sustainable...](https://articles.marketsmedia.com/trading-adapts-to-esg-and-sustainable-investing) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-917493152-Jul-07-2022-09-34-19-09-AM.jpg) [Focus on FX Execution Connectivity](https://articles.marketsmedia.com/focus-on-fx-execution-connectivity) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_333839538_L.jpg) [TRACE Turns 20](https://articles.marketsmedia.com/trace-turns-20) 11.09.2011 By Markets Media Europe # The Trouble With Europe 11.09.2011 By Markets Media [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/the-trouble-with-europe) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/the-trouble-with-europe) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/the-trouble-with-europe) Just when traders thought they were in the clear, news of Italy’s pending demise crushed equity markets and sent shivers down the backs of sovereign debt bondholders. U.S. equity markets sold off hard on Wednesday amid fear that the debt crisis in the European Union can’t be contained. The Dow Jones Industrial Average dropped 387 points to close at 11,783 while the S&P 500 took a 46 point hit, falling to 1229. With the fate of Europe resting in the palm of uncertainty, currency traders quickly sold off the euro after news broke that Italian Prime Minister Silvio Berlusconi would resign. The EUR/USD currency pair fell to 1.355 mid-day Wednesday and Treasuries strengthened slightly. And as expected, the return of fear led the Chicago Board Options Exchange Volatility Index (VIX) higher as it soared past the key 30 point level to stabilize near 36.4 for the day. The catalyst for the selloff occurred overnight when the interest rate on Italian bonds soared above 7 percent, which is the level at which Greece, Portugal and Ireland began to ask for a bailout. That caused a massive pre-market selloff in the futures. The question that remains is how the EFSF will end up bailing out countries without the assistance of the IMF and ECB. Only time will tell. [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/the-trouble-with-europe) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/the-trouble-with-europe) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/the-trouble-with-europe) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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