With the German market closed, the Euro Stoxx 600 was down 0.43% at 7:30 am. The dispersion is the story: Banks were down by 2%, but chemicals and industrials were up by 1.25%.

Europe’s basket-case banks remain undercapitalized, a point brought home to the market this morning when Spain’s Banco Popular dropped 16% after regulators warned that the bank would have to be sold or wound up.

The big Italian banks were down by 1%, and the French banks by a bit more. French stocks were the biggest drag on the index in terms of contribution to percentage decline, led by Total, L’Oreal, and Paribas.