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European Stocks And Bonds Plunge Most In A Month

Tyler Durden's picture





 

No matter what you are told by the mainstream media, peripheral government bonds have seen the worst 2-day sell-off in over a month with Spanish 10Y spreads +27bps this week so far and 2Y breaking back above 3% yield in a hurry. Just as we warned - this rally is not capital flowing back into 'tail-risk- removed govvies, it is simply fast money front-running actions and now momentum gains for the exits. Swiss 2Y rates fell their most in a month to -20bps as safety was sought. Europe's equity markets dropped for the third day in a row (hhmm more profit-taking we are expected to believe?) with the broadest BE500 index down 1.65% today and almost 3% off its recent high (the biggest 3-day drop in three months) and now at critical support once again. Equities are underperforming credit - as credit suffered the epic short-squeeze last week and we suspect remains a little gun-shy. EURUSD cracked back below 1.30 (down over 100pips to 1.2950 as Europe closes) and Europe's VIX jumped notably back above 23% - its highest in 6 weeks. GGBs lost their most in 3 months...

Europe's BE500 broad equity index suffering...

 

GGBs down the most in 3 months today...

 

Chart: Bloomberg

 


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Tue, 10/23/2012 - 11:50 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

That puts the DAX only up 21.6% this year.

Tue, 10/23/2012 - 11:49 | Link to Comment XtraBullish
XtraBullish's picture

CRASH COMING! Graham Summers stopped clock hands are finally being proven right (four years running)....

 

To learn how to play this CRASH, please check out my free newsletter at http://www.paymymortgage.com ...

Tue, 10/23/2012 - 11:58 | Link to Comment a growing concern
a growing concern's picture

Come on, people, that's some funny shit right there.

Tue, 10/23/2012 - 12:00 | Link to Comment Abraxas
Abraxas's picture

Depends on your definition of funny.

Tue, 10/23/2012 - 12:01 | Link to Comment q99x2
q99x2's picture

I wouldn't know. I quit reading GSummers articles the last time he predicted QE wrong again.

Tue, 10/23/2012 - 12:17 | Link to Comment asteroids
asteroids's picture

Maybe, maybe not. There is NO fear today. Volume is low too. Don't play.

Tue, 10/23/2012 - 11:52 | Link to Comment Abraxas
Abraxas's picture

What we have here is failure to communicate. Some men you just can't reach. This is the way they wanted it. So they got it. I don't like it any more than you...

Tue, 10/23/2012 - 11:55 | Link to Comment jayman21
jayman21's picture

Helping out with distractions.  Tyler put up an amazing picture of marching Chinese yesterday.  I thought it was from Photoshop.

I guess not:

http://www.youtube.com/watch?v=jAGPCjZ-WFo&feature=related

 

Tue, 10/23/2012 - 11:53 | Link to Comment lesterbegood
Tue, 10/23/2012 - 11:53 | Link to Comment Quinvarius
Quinvarius's picture

Where will all that wealth go?  That is the question.

Tue, 10/23/2012 - 11:57 | Link to Comment Abraxas
Abraxas's picture

There is nothing like a good crisis to channel the wealth from point A to desired point Z (using points in the middle as temporary stops to muddy the water).

Tue, 10/23/2012 - 11:58 | Link to Comment slaughterer
slaughterer's picture

All bounces over the last two days in equities were produced with help of capital made from stop busting right before the bounce.  

Tue, 10/23/2012 - 12:01 | Link to Comment evolutionx
evolutionx's picture

The Bundesbank's fear of Fed tungsten bars

In response to public pressure, the Bundesbank, the German central bank, now wants to bring "parts" of Germany’s gold reserves home and verify their authenticity. Is fear rife in Frankfurt of counterfeit gold bars from the USA which are actually made of tungsten?

http://www.mmnews.de/index.php/english-news/11133-the-bundesbanks-fear-of-fed-tungsten-bars

Tue, 10/23/2012 - 12:01 | Link to Comment evolutionx
evolutionx's picture

The Bundesbank's fear of Fed tungsten bars

In response to public pressure, the Bundesbank, the German central bank, now wants to bring "parts" of Germany’s gold reserves home and verify their authenticity. Is fear rife in Frankfurt of counterfeit gold bars from the USA which are actually made of tungsten?

http://www.mmnews.de/index.php/english-news/11133-the-bundesbanks-fear-of-fed-tungsten-bars

Tue, 10/23/2012 - 12:04 | Link to Comment q99x2
q99x2's picture

Todays drop will give the FED the chance to upgrade its software to where it can get within a 100th of yesterday's close by the close today. They did good yesterday.

Tue, 10/23/2012 - 12:10 | Link to Comment orangegeek
orangegeek's picture

Follow the US Dollar folks.  It is 57% weighted against the Euro.  When the Euro falls (likely), the US Dollar rises or so says the math.

 

http://bullandbearmash.com/chart/dollar-climbs-mildly-euro-climbs/

 

And when the US Dollar rises, markets drop.

Tue, 10/23/2012 - 12:40 | Link to Comment Zero Govt
Zero Govt's picture

The Bull & Bear Mash, using the clowns scatter gun of Idiot, sorry, Elliott Wave (mis)analysis, hasn't been right in months

like your Prechter Godfather whose been calling ever more shrill for an epic decline for months and months ...calling it 20 weeks on the trot and getting it right once (ie. a 5% success rate, 95% failure rate) is not justification for contuning to pretend you have any predictive ability

Prechter should have packed up 25 years ago, you should pack up too, you've been wrong for WEEKS  

you village idioticians couldn't time an egg

Tue, 10/23/2012 - 12:16 | Link to Comment Zero Govt
Zero Govt's picture

"..and now momentum gains for the exits.."

Very sweet way of saying, "STAMPEDE.. RUN FOR THE HILLS"

Tue, 10/23/2012 - 12:28 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

This is tomorrow's news today! The lamestream just announced the losses at Caterpillar this morning.

Tue, 10/23/2012 - 13:10 | Link to Comment six9ine
six9ine's picture

If you really want to know what the market is doing, pay close attention to the information on this site -> http://virdigo.wordpress.com/ 

Tue, 10/23/2012 - 15:43 | Link to Comment Grand Supercycle
Grand Supercycle's picture

SP500 sell off...

Despite recurring short squeezes, SPX etc daily charts continue to break down.

DOW 8 hour chart shows H+S (bearish pattern)

http://trader618.com
http://www.zerohedge.com/news/2012-12-24/market-analysis

Do NOT follow this link or you will be banned from the site!