Financial markets reacted negatively after the ECB meeting

Financial markets reacted negatively after the ECB meeting. The ECB did not announce any new measures at the monetary policy meeting. Global equities continues sharply down. During the trading session the Dow was down almost 10%, probably driven by computer initiated trading. US stocks reversed most of the losses before closing. Dow Jones closed down 3.2%.  Nikkei drops more than 3% this morning, and Bank of Japan injects JPY 2tn into the financial system to help stabilise the system.  Greece's parliament last night passed the three-year EUR 30bn package of austerity measures.  Banks equities were hit further and the price on default protection rose further - in particular for Portuguese banks. In covered bond markets, asset swap spreads rose further for Southern Europe countries.  The Euro remain under pressure. EUR/USD is below 1.27.  Money markets tension are increasing and signs of USD shortage are becoming more evident. Short-end swap spreads are widening.  Emerging markets are being hit, with EMBI spread widening and Eastern European currencies weakening.  Volatility is increasing sharply in all markets.