Europe Plunges By Most In Six Months

Tyler Durden's picture

We warned last week that European markets were beginning to show signs of cracking. European stocks had surged on to new highs while credit markets had decidedly not joined the liquidity-fueled exuberance. Sure enough a few days later and Europe in general is weak, but Italy and Spain are under significant pressure. The last four days have seen the biggest plunge in over six months with the IBEX (Spain -5.7%) and Italy's MIB -6.7%. At the same time, Europe's seemingly invincible OMT-promise-protected sovereign bond market has started to underwhelm. Italian bond spreads are 32bps wider and Spain 28bps wider - the biggest increase in risk in two months. Europe's VIX has surged from 14.5% to almost 19% today in the last 4 days and even Greek government bonds are losing their luster, -6.5% in the last few days. Whether this is exacerbated by European leaders jawboning the strength of the EUR down, or simply we hit the limit on reality amid Italian bank fraud, Spanish political fraud, referenda votes, and macro- and micro- fundamentals snapping; this is the worst performance in Europe in six months. It would seem that if the tail-risks in Europe are starting to re-appear then at least one of the legs of global equity exuberance is starting to break.

European Stocks are falling rapidly!!


Worst few days in over six months...


led by banks (Italian banks)...


catching down to credit's weakness...


as sovereigns start to crack wider also...


Charts: Bloomberg

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TotalCarp's picture

Lets all hope bernanke's minions choke on the way to work today..

Never One Roach's picture

EU has a "jobless recovery" ...same as USA.

rotagen's picture

Oh noes, trouble in the Soviet Union of Europe? Ize never heard sumthin such beforz!

LawsofPhysics's picture

U.S. Ten year yield above 2.0 %.  Ben has some bonds to buy, market may go down a bit as his central bank minions buy with the sheeple's 401k monies (for a small fee, of course).

fonzannoon's picture

I think we ran up to what...2.25% last year around this time. Everyone ran around with their hair on fire that that the bond bull market was ending. Then something popped up and everyone went running back. Same as always.

TotalCarp's picture

In the cross asset space the cheap fuel to the run up has been funding from usd and jpy, both getting crushed against eur. Posis quite stretched, time for fat fks to try and get out of a burning house all at once.

kliguy38's picture

DON'T BUY GOLD.....get into those fochin' lemmings

LawsofPhysics's picture

I hold numerous productive assets and physical PMs.  When fraud is the status quo, possession is the law.  All paper is burning, but it doesn't hurt to front run the stupidity to aquire more physical, now does it?

eclectic syncretist's picture

WTF you worried about?  The Central Banksters are all over this.  Didn't you hear they came up with a plan of action at Basel summarized by their keynote speakers here


Lucius Cornelius Sulla's picture

The 10 year is the canary in the coal mine.  The FED is not in control.

economics9698's picture

And they have not been since 2008.  Dumb fucks.

buzzsaw99's picture

gold slightly down too. by your logic gold buyers are dum fuks too.

buzzsaw99's picture

gold slightly down too. by your logic gold buyers are dum fuks too.

eclectic syncretist's picture

The banksters have been selling the bonds to get in on the big stock market boom that's taking place.  This market is FLYING.  and if it doesn't come down soon my puts are going to expire worthless yet again, SOAB.

Maybe BS Berstanke will have to get the other banksters to sell equities and buy bonds for a while.  Doesn't look like he's got nothing else to do at the moment.

SheepDog-One's picture

HEY it WASN"T the 'elections' they were proping up markets for, it was for the StuporBowl after all!!

orangegeek's picture

Euro is tanking too.  This should send the US Dollar way up.   Euro has been in vertical ascent since mid 2012.

SheepDog-One's picture


Obchelli's picture

Where do they find all this bulls? Listening to David Bianco from Deutche is just sickening (Yes I know I watch CNBC ;-(). No reasoning nothing - just bullish. Based on f-ing what?

unrulian's picture

bullish based on their need to steal your money and perpetuate the lie...what else?

10PastMidnight's picture

It is directly tied to the fleecing of the people, moar fleece needed = moar bulls needed. You know Benny would never tell the girls he has a 3 inch penis, so he sends in the bulls to let them know, he is hung at 8 plus.

falak pema's picture

I think he meant a three inch toe nail; now that would impress the girls if it had nail paint and a naked toe  tatoooooo!

100pcDredge's picture

I couldn't care less.

Water Is Wet's picture

Yep.  This European bullshit dragged on for all of last year.  I don't want to hear about it anymore.  It's time for a new show.

GetZeeGold's picture



Break out the Devil Ether. It will accelerate the process.

Non Passaran's picture

Roger that, but I demand Fear and Looting!

TrumpXVI's picture

This is a VERY bullish development!

Peter Pan's picture

There are limits to manipulation and the limits are now within sight. It's strange how the ordinary person is fully aware of how bad things are and it is only the top 1% that needs to wake up as well but is hindered from doing so by the mirage of a rising stock market.

yrbmegr's picture

"We warned last week...."  You have warned every day for the last five years.  The thing about predicting the end of the world is that, eventually, you will be right.

katwoman's picture

Yes, god knows how much money I have lost buying ES puts in the past 2 years...and just now

Haus-Targaryen's picture

Hey dumbdumb-


ZH's economic, M3 and M6 analysis of the EuroCrisis is spot on.  The Currency should have died in Augsust/September of 2012.  What ZH (and Nigel Farage, and me, and a ton of other people) underestimated was the abject political fanatiscism of the people running the EMU.  For these ideologues it is no longer just a economic union or political expirment -- it is their religion. 

Temporalist's picture

I have a Von Rompuy and Draghi crucifix on my dashboard.

yrbmegr's picture

There is an old story about crying "wolf!"

JimBowie1958's picture

This isnt about 'wolves' dude, its about the FED playing dice with our nations wealth.

Eventually they will lose too many times and destroy everything they are playing with. I know this because the Universe is taking the other side of these bets and it has deeper pockeets than even the Fed.

yrbmegr's picture

Actually, it's about Europe.  Dude.

falak pema's picture

its not just their religion, its Pax americana religion. The analysis on the other side of the pond, where ponzi reserve is king, is just as precipitous. Nigel Porridge can only swear in English about the Euro clowns...that's precisely his limitation, like all those City bums around Cameron.

Don't go blowing your horn about eurozone without including the overall picture of Oligarchy cabal around king $.

Just imagine if a tiny pebble like Greece or even Cyprus sends shivers down the spine of global incestuous bankers, drowning in debt and unknown CDS spider's web. It jerks the CB printers to spew 24/7, what would that world be like if the big boys suddenly said "I'm leaving the banksta table! "...??

All in one boat; and its controlled by king FED of uber $ reserve. Capo di Capo.

Grand Supercycle's picture

Get Ready Bears...

Wile E. Coyote overdue sell off awaits as SPX daily & weekly charts continue their protracted topping process from current
extreme levels.

fonzannoon's picture

Whatever. Look at them calmly steer those futures back. Even knocking gold down a few bucks at the same time. Wile E. Coyote can walk on water. Please disburse. Nothing to see here.

GetZeeGold's picture



Don't fight the Printer.

unrulian's picture

what i have learned from the 12-15 printers that i have owned since they became feasible to own personally is that they work fine until that day that they don't...i could never predict when it happened, it's always at the worst possible time....i have also learned i have to have physical pen...just in case

TotalCarp's picture

Amen brother.. I believe it when i see it. Tbh "they" have been pretty efficient at letting some steam out and using that as an excuse to print more so perhaps this time will be upon us again soon.

Whiteshadowmovement's picture

Lol, even the euros nudging back up. Just about 12 minutes by my count till it gets ramrodded back over $1.36


unplugged's picture

there is no sell-off that a money printer can't fix - don't hold your breath

forwardho's picture

Brilliant! With unlimited creation...

eclectic syncretist's picture

The RSI on the SPY has been over 80 nine of the past 11 trading days, and over 75 for 11 consecutive days.  Historically speaking, by this metric the market is about as overbought as it ever has been.  Some of this money appears to have come out of bonds, but could some be one the run out of Europe?

thismarketisrigged's picture

looks like bernankes printer maybe broken today. i see the futures are down modestly, i hope bernankes printer is unfixable