Further turmoil in the markets this morning as the political situation across Europe continues to dominate the picture. Talk of the break-up of the single currency continued to cause pressure on the stock markets with the fall being led by the Greek and Spanish banking industry. Moodys, the rating agency, cut the credit ratings of 16 Spanish Banks, along with Santander UK (a subsidiary of the Spanish Banking Giant), due to "adverse operating conditions, characterised by the renewed recession, the ongoing real-estate crisis and persistent high levels of unemployment" the sell-off, which started in the evening session in New York, continued apace as the Asian markets opened. The Nikkei average fell 3%, which was the biggest one day fall since last August.

Despite managing to rally 50 points from the overnight lows, the FTSE, at time of writing is trading at 5280, some 100 points lower than this time yesterday morning.

No economic news later today, but all eyes will be on the eagerly anticipated Facebook flotation due to begin trading in New York this afternoon. Despite continuing questions remaining about the firm's ability to generate profit (!) the shares being valued at $38, and apparently in high demand at those prices, makes the 8 year old firm worth over $100Bn. This represents one of the highest valued share sales or IPOs in US history. However the new shareholders will not have much of a say in how the company will be run as the current owners will still control 96% of the voting power of the company.

Yesterday saw the technical's push EURUSD down further underwater, helping it touch a new 4 month low at 1.2665, and meaning the pair saw a fifth day of losses. The trend remains bearish with traders looking to breach the 2012 lows of 1.2623. Another factor not helping the single currency is the concern that the contagious situation in Europe is going to spread to Spain and Portugal, and this is proving to be worrying for any remaining market bulls.

Gold's safety haven status was clear in yesterday's trade, with the precious metal posting one of its highest gains for the year. The 35 dollar gain to 1573.0 followed on from heavy selling earlier in the week as gold was weighted down by a rallying greenback. The reason for the boost was extremely poor manufacturing figures from the Philadelphia Fed, which shook nerves as a faltering US economy didn't seem all that unlikely. Currently the yellow metal trades at 1574.

Black gold carried on its decline yesterday as it took on the opposite effect of gold with the weak US figures. As the fundamentals build for a harsh contraction in economic activity, the bears look like they're happy with the adage 'Sell in May and go away'. Currently, brent crude trades at 106.76.