European markets are being dragged down by banks, financials on concerns sovereign debt will hinder recovery. A WSJ report that Europe's recent stress test understated the holdings of some of the riskier government bonds weighed on banks. Miners drop as Australian Treasurer Wayne Swan says the government is committed to introducing a tax on mining profits.  German factory orders unexpectedly fell in July as demand in the euro region weakened.  Volumes are still lite.  We have seen long only buyers of financials at lower levels and sellers of miners.

FTSE  -.87%

DAX  -.71%

CAC  -1.21%