European Equities Roundtrip Friday Losses But Credit Is Not Buying It

Tyler Durden's picture


Catching up to the apparent 'good news' from the Spanish bank audit debacle and as we noted earlier, the smallest of beats in a singular data item, provided some support for equity prices in Europe today. It appeared as though traders had reduced weight or been modestly short-biased into the news and the lack of events spurred a reversal - which on its own looks good but merely returns us to Thursday's close (or not even for Spain). In other markets, the US ISM data spurred a jump which was immediately faded in both EURUSD, European sovereigns, and European corporate/financial credit markets. Bottom line - European equities round-tripped from Thursday but credit markets are much less sanguine.


European Stocks rebounded from Friday's weakness (but IBEX remains weaker)...


European sovereigns were limping tighter (more on Germany's beat) but deteriorated rapidly into the close after spiking on US ISM data...


and European stocks remain far more sanguine than credit markets...


Charts: Bloomberg

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Mon, 10/01/2012 - 11:57 | 2845290 LawsofPhysics
LawsofPhysics's picture

When things get bad, you have to lie - Juncker.


when things get really bad....

Mon, 10/01/2012 - 12:02 | 2845301 CPL
CPL's picture

When things get really weird...futures and physical prices get fixed.

SILVER FUTURE (USD/t oz.) 34.750 0.173 0.50% 11:41
HKMEx SILVER (USD/t oz.) 34.750 0.000 0.00% 09/28

How often has anyone seen that?

Mon, 10/01/2012 - 12:21 | 2845366 LawsofPhysics
LawsofPhysics's picture

I saw that, just wait, we haven't seen anything yet when it comes to true price controls and "fixing".

Mon, 10/01/2012 - 12:03 | 2845298 ekm
ekm's picture

Anybody knowing what Pyramid Schemes are, wouldn't be surprised.

Check this:


“It’s a sad day that could easily have been avoided by more sensible leadership earlier … It doesn’t matter how big you are, if you are really determined to go off an offend people all over the world, which was what (chairman) John Gay did — he offended the Japanese customers in the woodchip market, he offended the banking industry, he offended the investment community, he sued the community — I mean, those guys just didn’t think gravity applied to them. As a result they have turned a large company into a very small company and that should be a lesson to everybody who gets carried away with spending other people’s money. You have to remember that the vast bulk of this money came from people’s superannuation funds handed over by imbeciles in the investment community — I say that very calculatedly because I and others sat down in front of the CEOs and argued with their fund managers that they should not pour hundreds of millions of dollars of other people’s money into this company — and they did it anyway. And despite repeated massive losses hey just kept pouring money in. It was just crazy.”

Mon, 10/01/2012 - 12:05 | 2845312 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

Its not a Pyramid , its triangular! =]

On the same vein, how would you like a *Brand New* Preowned Sonata

Mon, 10/01/2012 - 12:08 | 2845326 CPL
CPL's picture

Spend now, save later.

Mon, 10/01/2012 - 14:35 | 2846011 gdgenius
gdgenius's picture

You dumb bastard. It's not a schooner it's a sailboat...

Mon, 10/01/2012 - 12:02 | 2845303 BigDeuceLittleToilet
BigDeuceLittleToilet's picture


Mon, 10/01/2012 - 12:04 | 2845308 leadingmarkets
leadingmarkets's picture

Losses losses everywhere! my portfolio is green this month thanks to these guys

Mon, 10/01/2012 - 12:19 | 2845337 kaa1016
kaa1016's picture

Look at TLT, HYG and VIX all bouncing off of their lows. HYG has been negative all day. It doesn't look like this rally will hold. Time to put on an AAPL put spread.

Mon, 10/01/2012 - 12:21 | 2845364 disabledvet
disabledvet's picture

Equities are a forward looking indicator...and in the EZ they've been stuck at multi-decade lows for quite some time now. "Now you know the difference between what the USA did in 2008 and the euro-zone." so the question therefore has never been "where's the growth going to come from" but as has been reported here and only here "where are the bailouts going to come from and will they work?" and now we know the answer: "the only work in Germany."

Mon, 10/01/2012 - 12:30 | 2845402 GaryNeville
GaryNeville's picture

Simple -

Bad ISM/ Economic News = Rally

Good ISM/ Economic News = Rally

 This is the monster Bernanke has created!

Mon, 10/01/2012 - 12:42 | 2845444 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

What goes up must always go up.

If its yellow let it mellow if its brown flush it down. Brb, have to poo.

Mon, 10/01/2012 - 14:08 | 2845847 orangegeek
orangegeek's picture

Jerry, just remember. It's not a lie... if you believe it.


George Costanza,

Seinfeld - Febuary 9, 1995.


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