he Euro is diving again Tuesday as Asia wakes up to lower equities and lower commodity prices. The Nikkei 225, the Shanghai and the Hang Seng indexes are all lower early Tuesday while July oil on the NYMEX has dropped 91 cents (5:45 PM).
Euro

The Euro-Zone crisis is not over. Yesterday the Bank of Spain stepped in to bailout regional bank, Cajasur, after it failed to complete a merger with another Spanish bank based in Málaga, Unicaja. This shaky situation could have been one of the culprits in Monday’s decline of U.S. stocks. Investors fear there may be more Spanish banks in need of assistance. Lower property values have hurt Cajasur and other lending institutions. Spain's property companies have debts of 445 billion, according to Goldman Sachs. That works out to 45 percent of their GDP.

The International Monetary Fund (IMF) released a statement Monday indicating their concern. Citing numerous problems including a dysfunctional labor market, the deflating property bubble, a large fiscal deficit, heavy private sector and external indebtedness, weak competitiveness, anemic productivity and growth, the IMF is calling for “far-reaching and comprehensive reforms”.

The IMF says the Kingdom of Spain needs to reallocate and promote labor across all sectors. They need a “flexible” labor force. Fiscal consolidation and banking consolidation should help the country synergistically solve their economic woes.
Yen

Over the past few weeks Japanese investors have been pulling their money back to Japan. Apparently they have not been investing in equities because the Nikkei has been suffering, but the Yen is up 2.65 percent over the last week compared to the dollar.

July Gold moved higher on Monday and has moved another 90 cents higher in after-hours trading on the NYMEX. Investors may be looking for liquidity in these uncertain times.