Europe Ends Unch As "Italian Hope" Gains Evaporate

Tyler Durden's picture

For a moment there it was all solved. Everything was in full bull mode (apart from the EURUSD). Then, the 'buy first, ask questions later' crowd saw the headlines and the covering began. Of course, bulls will point to the fact that stocks closed unchanged and not down and sovereign spreads ended unchanged and not wider but the truth is that the Italian stock market dropped 4% from pre-poll headlines, Italian and Spanish bonds cracked over 30bps wider and the EUR dropped 160 pips. Finding support at 5%, Spanish yields pushed higher and ended back above 360bps spread to Bunds. Europe's VIX pushed back above 21.5% but it is EURJPY's retracement of all the overnight gains that is probably hurting global risk the most for now...

The center of the chaos... Italian stocks and bonds and EURUSD...

 

and the rest of Europe...

 

Charts: Bloomberg