EURUSD Melts Up But European Stocks Lag Into Weekend

Tyler Durden's picture

The week in Europe was a dispersed one. EURUSD is probably the story with its massive 1.6% rise against the USD (on what exactly? better PMI? come on? a totally useless summit that achieved nothing? or just good old repatriation as they sell out of their AAPL shares). Most European sovereign bonds ended the week unchanged - though Spain managed a modest 12bps compression in yield. Italy's equity market surged 3.6%, Spain's 2.78% but the rest are up less than 1% on the week. Today's trading was dead - almost totally flat in ever asset class with little volume - balanced between US markets sell off and China's overnight exuberance. Europe's VIX closed down around 0.7 vols on the week at 16.5% (but well off its Mondasy spike highs at 18.7%) - below US VIX! The broadest European stock index (Bloomberg's BE500) however has seen a slow drag in the last two days - notably underperforming credit on the week.

 

Europe's VIX closes below US VIX...

 

It seems the linear algos have EURUSD firmly in their control...

 

European Stocks...

 

European Sovereign Bonds...

 

European broad stocks notably lagging vs credit...

 

Charts: Bloomberg