Belgium was downgraded by S&P and Spain’s stock index (NYSEARCA:EWP) was hammered on the news/rumor that the country won’t be able to manage its deficit and financing costs as the contagion spreads across Europe to the region’s biggest economies.

Finally, Greece was back in the news with new demands that its bondholders take bigger “harcuts” on its debt than previously considered.

With Europe on the ropes and suffering from political gridlock, global risks continue to multiply and it looks increasingly doubtful that the traditional “Santa Rally” will arrive on schedule.