The overdue correction in stocks after a huge seven week rally between mid-October and last week continues to broaden and deepen. This time, the slide can’t be blamed on crude oil, which has a trading bounce underway correcting some of its recent heavy declines. Rather, the declines appear to be due to growing economic and political concerns. Chinese stocks, which had been defying gravity fell overnight with the Shanghai market down around 5% and the China A50 down over 6%. In tandem with this, concerns about weakness in China’s economy after the poor trade numbers and the potential for further PBOC easing has sent CNH sharply lower again. Europe, meanwhile, is under pressure on growing concern that the political risk honeymoon the Eurozone had enjoyed the last two years may be ending. Last night, Greece’s government moved up a parliamentary election for a new President up by two months. Meanwhile, the possibility that a snap election could be held early next year which could bring the opposition euroskeptic Syriza party to power has spooked traders. Athens’ main index has dropped 10% today while Greek treasury yields (a fear measure) have jumped back above the key 7% level and yields for treasuries in Italy, Spain and Portugal have started to creep higher. The potential for renewed political risk in Europe has dragged on major European indices as well which are all down about 1.6-2.2% today. US indices, meanwhile, have been following their overseas peers lower in the absence of any meaningful economic news out of North America. Growing fears over economic and political risks has driven some traders to start seeking out defensive havens their capital, which has sparked rallies today in Gold (up $25/oz), Silver (up 3%) and JPY (up 1% with USDJPY diving back under 120.00). As more factors come together to impact trading and with uncertainty growing, volatility continues to increase around the world which may create increased opportunities for active traders on both sides and across many markets. Corporate News There is no major corporate news out today so far. Economic News Economic reports released overnight and this morning include: UK same store sales 0.9% vs street 0.6% UK industrial production 1.1% vs street 1.8% UK manufacturing production 1.7% vs street 3.2% Greece consumer prices (1.2%) as expected Germany trade balance €21.9B vs street €18.9B Australia business confidence 1 vs previous 4 Australia business conditions 5 vs previous 13 Economic reports due later today include: There are no major reports scheduled for North America later today.