This page has been archived and commenting is disabled.
Europe Ends Winning Week By Giving Half Of It Back
CNBC is convinced - this is just profit-taking, and think about where we have come from? We prefer to base our positioning on expectations of the future as opposed to extrapolations of the past. If only we could ignore the last two days, Europe would look awesome! Every asset class is indeed up for the week: stocks, EURUSD, sovereign bonds, and corporate and financial credit. However, the last 36 hours or so has seen almost half of the week's gain s chaffed away by them pesky profit-takers (apparently). EURUSD is 100pips off Wednesday's highs; Bloomberg's BE500 (broad equity index) is around 2% off Thursday's highs; IG and Financial credit spreads are around 5-10% riskier from Wednesday's tights; Spain's equity market is 3.5% lower than its peak on Wednesday and Italy down 2.5% from its mid-week highs. Sovereigns have remained relatively resilient - giving back only a few bps of their gains this week (Spain/Italy -40bps on the week). But apart from all that - Europe's doing great apparently. Spot the odd chart out (and which do you trust?)
EURUSD...
European credit spreads...
European stocks...
and the ever-reliable European sovereign bond market..
Which one of these charts is the odd one out?
Which is directly monitored and used as a signal for markets around the world?
Which is the metric by which the ECB and Europe's leaders judge the efficacy of their performance?
and which is the market that is increasingly dominated by domestic on-the-edge financials?
HHmmmm...
Charts: Bloomberg
»
- 5184 reads
- Printer-friendly version
- Send to friend
- advertisements -
SELL MOAR GOLDZ!
http://www.youtube.com/watch?v=ir2rFb_ghn0
If you think this is 1987, you should buy moar goldz. It went straight up on that day.
But this isn't 1987. This is every banker on the planet trying to get you out pf everything rolling into QE3.
I'm just channeling the haters this morning.
It don't phase me bro! My thesis is as bullish as post QE1.
True dat.
I know the answer to all those questions, but I'm not going to say.
Gold taking a beating too. It must have given up all of its QE infinity gains now.
Speaking of 'the odd chart out': Meanwhile in NA natty is experiencing another quiet opposite day
Of course its profit taking, why else are stocks sold. Why is there even a stock market, i assume its for profit taking? What a moronic statement by msm. On other news water is wet.
lmfao!
Would that be the BE500 index Alex?
Italian bonds or Gold.....hmmmmmm...a choice is not always a choice one
Europe loves to turn the other cheek...
Again: http://www.youtube.com/watch?v=bXq3dytL6ZA&feature=fvwrel