With European stocks winding down, the laggard this week was Italy’s MIB, down 1.9%, nearly all of it today.

To me, the index looks like it’s consolidating after a 12% rally to start the year.

Italy MIB daily

Italy MIB daily

A big driver for the euro has been inflows into Italian and Spanish bonds (and stocks to a lesser extent). If signs of trouble emerge, it could be another reason to sell euros.