Note: I have added a links to the yield/chart of the PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) to the “Tools of the Trade” section on the right-hand sidebar. One of the things to keep an eye on would be the recent peak-highs in yield on the some of these gov’t bonds (particularly the 10 year bonds) as a move above those recent highs will likely indicate that the global central banks’ efforts to contain those yields has proved ineffective would most certainly have a negative impact on global financial markets.
On a potentially related note:
May 25, 2012 3:07pm ET- News Alert from The Wall Street Journal: Spain is prepared to inject $23.8 billion in financial support requested Friday by troubled lender Bankia SA, the bank said Friday, in what would represent the largest bank bailout in the country’s history. Also Friday, Standard & Poor’s cut its ratings on the creditworthiness of Bankia and four other banks, and revised its assessment of Spain’s economic risk, saying it believes the country is entering a double-dip recession that will lead to a large increase in troubled assets.