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European Stocks And Bonds Plunge Most In A Month

Submitted by Tyler Durden on 10/23/2012 11:43 -0400

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 | 2912911 ghostfaceinvestah

That puts the DAX only up 21.6% this year.

Tue, 10/23/2012 - 11:49 | 2912913 XtraBullish

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 | 2912936 a growing concern

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

Tue, 10/23/2012 - 12:00 | 2912943 Abraxas

Depends on your definition of funny.

Tue, 10/23/2012 - 12:01 | 2912946 q99x2

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

Tue, 10/23/2012 - 12:17 | 2913002 asteroids

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

Tue, 10/23/2012 - 11:52 | 2912915 Abraxas

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 | 2912922 jayman21

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 | 2912924 lesterbegood

No more bailouts from Germany?

http://sherriequestioningall.blogspot.com/2012/06/german-constitutional-...

Tue, 10/23/2012 - 11:53 | 2912925 Quinvarius

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

Tue, 10/23/2012 - 11:57 | 2912929 Abraxas

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 | 2912937 slaughterer

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 | 2912952 evolutionx

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 | 2912953 evolutionx

The Bundesbank's fear of Fed tungsten bars

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

Tue, 10/23/2012 - 12:04 | 2912959 q99x2

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 | 2912982 orangegeek

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 | 2913032 Zero Govt

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 | 2912995 Zero Govt

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

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

Tue, 10/23/2012 - 12:28 | 2913026 toomanyfakecons...