This morning, the problems in the European Union are starting to surface once again. Recently, all of the major stock indexes have been floating higher steadily each and every day on extremely light volume. Often, stock rallies that lack volume and conviction can lead to sharp sell off days. At this time, there are reports that Greece may have to default and this could trigger a domino effect in many European credit default swaps (CDS). A credit default swap is basically an insurance policy on the debt. Should this occur it will be problematic for the entire Euro-zone.
According to news reports, France is likely to be downgraded by the credit rating agency Standard and Poors. This downgrade is somewhat expected by many investors and traders, however, it will affect bond yields in France and Europe going forward.