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Europe Ends Red With Sovereigns Seeing Selling-Pattern Seven Days-In-A-Row
Between the IMF's European growth expectations and deleveraging needs, it seems reality is sinking in a little in Europe. All equity indices are closing red today with Spain and Italy worst and banks underperforming. The most interesting feature we noticed is that once again - now the seventh day in a row - European sovereign spreads have deteriorated notably from the US day-session open to the European close. Spain and Italy 10Y bond spreads are 15 and 8bps wider (only) on the week but notably Spanish and Italian equities are down 3.2% and 2.8% respectively this week. EURUSD is practically unch at the EU close - up 60 pips from overnight weakness.
Seventh day in a row of weakness from US open to EU close for Italy and Spain...
European sovereign bonds have modest leak wider on the week...
but stocks have bled notably...
Charts: Bloomberg
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the Cliff Notes version of Santelli v Liesman yesterday - https://www.youtube.com/watch?v=_ZHQsWxmQLg
Dude. Seriously?
One schtick pony.
Are you being paid $5 per post?
I heard Bill Gross was buying European bank debt.
Heh, probably because in addition to MBSs, bank debt is the next thing the Fed will monetize.
He loves to frontrun QE, so whether it be Benanke or Draghi he believes he'll be bailed out.
The Bernank has put a dagger through the heart of the EZ. Not saying he meant to do that of course...indeed TS Geithner is probably thinking "there goes my descent into Heaven." eh...best laid plans of mice and men. Clearly we're preparing for an incursion into Syria. Given all else going on in the entirety of the region it's all State policy all the time to me. Just saying how I see it...nothing more. Nothing less either.
EUR/USD is not to blame for today's ES weakness. It is something else. ZH nailed it: EZ sovereigns.
With the bankers and the Eurozone shirker members (Greece) expecting Germany to bail out the deadbeats is NO different than for the more prudent US states to bailout the debt-sodden union states like California! Yuk! Let the Eurozone countries secede - Let My People Go.
We need Spain to break through 6% again... Come on, Rajoy, you can do it!
And then Italy (today 10yr yield is barely up - at least they're trying).