Over the next few days the euro zone markets will be watching the German opinion polls very carefully in the run-up to Sunday's general election -- especially at the growing risk of a hung result and a grand coalition being formed,
Right now the emphasis seems to be on asset price deflation. The key questions concern just how far these markets can correct and whether there will be a domino effect as other markets are affected.
Markets are starting to wind down for the long holiday weekend.
There will be a welter of data ahead of the holiday period, which will leave the markets a bit shell-shocked.
It's really bleak news because it comes just at the moment European stock markets are beginning to feel we might have seen the worst of the recession in the States.
The markets have been pinning their hopes on improved chances of speedier tax cuts and structural reforms that would speed up the road to faster German recovery, ... Investors would tend to give a grand coalition the thumbs down, as reforms would be put on ice.