European Stocks Start Catch Down To European Credit

Tyler Durden's picture

Awful unemployment, dismal German retail sales, huge uncertainty over the Greek buy back plan. Have no fear, "buy stocks and you're good to go" seemed to be the message this week in Europe. However, as the afternoon went on in Europe, so equities gave back their day's gains and started to catch down to the far less exuberant credit markets. European sovereign credit rallied into the close leaving Spain and Italy -25bps on the week. The European week was dominated the massive squeeze in the US driving a wedge overnight from Wednesday's close to Thursday's open in Europe - the squeeze seems to be done for now as we are fading back today. EURUSD pushed higher on the week by a mere 25pips to close its week in Europe above 1.30. Europe's VIX stabilized today at 16.5% (after falling 1.25 vols on the week). Bottom Line - Europe closed weak and equities feel very lonely up here.


All the week's European Stock gains came from the overnight gap from Wednesday to Thursday...


European stocks (blue) turned around today to close red and start to catch down to credit's lack of ethusiasm...


European Sovereigns faded back after Thursday's gap-down squeeze...


EURUSD clung to 1.30 and ended the week very marginally higher...


Charts: Bloomberg

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The Axe's picture

I heard a RUMOR that someone is actually trading

Clueless Economist's picture

A great patriot, George H. W. Bush lies near death in a Houston hospital, and you are more worried about those EuroTrash?


Itch's picture

Heart attack im sure, when that flid realises how much he has been screwed a heart attack is the only logical conclusion.

mac768's picture

the rumor is about central banks keeping the illusion....

if you look at the dismal German data, you understand who is buying on hopium

fig_newton Trader's picture

Does any one know what a 3s6s basis is?

disabledvet's picture

Europe is in the throes of a total meltdown. "Depression 101" still...the constant refrain of my infantry days "I NEED MORE MEN" keeps ringing in my ears. What's the problem here?