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