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European Stocks End Q1 In The Red
Europe's Dow-equivalent - the EuroStoxx 50 - closed today negative year-to-date. The divergence between the exuberance in the US and dysphoria in Europe reminds us of 2012 - when exactly the same thing happened. Of course, the fact that stocks are red should come as no surprise since credit markets have been markedly wider on the year for a week or two. Today started off on a bright spot (as there was no blood on the streets of Nicosia) which spurred some buying in European stocks - but into the close that faded quickly with Spain and Italy pushing back into the red (and the rest of the markets following suit). EURUSD surged all day but as Europe closed it retraced a little of the gains - unable to snag 1.2850 (but 100 pips off the lows). German bunds remain bid (2Y at -2.6bps vs Swiss at -0.02bps) as die neue safe haven remains. So Europe ends Q1 in the red; China ends Q1 in the red; and US credit is unchanged in Q1; but US stocks +11% - sustainable?
as EURUSD slumps (with a small bounce today)... with it touching 4 month lows intrday...
and European stocks and bonds bounced a little but gave it all back into the close today...
Leaving Spain and Italy notably lower on the year...
and Italian bonds notably wider on the year...
and European Banks are trading at more than six month lows...
So, let's get this straight. The three pillars of US equity strength appear to be - European tail-risk is off the table (Draghi): well it appears that is not true given the blowouts in bank stocks, sovereign credit, and equity indices in general in Europe; Global growth renaissance: well that appears to be cleary untrue as Copper inventories surge in China, electricity production plunges, and their market collapses; and US earnings recovery: well yeah apart from ORCL, CAT etc... and the consistent 46 week of negative up vs down EPS revisions...
So what is it? I think we all know really...
Charts: Bloomberg
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Pfft - who cares? Thanks to Benron, toner and <CTRL>+<ALT>+P it's all good on this side of The Pond.
ALL HAIL BENNY!!
yep....we all know the script....ES up on quarter end, up on 1st day of month, new qtr, hope of earnings, hope of hope, hope of Alcoa, hope of QE, hope of a recovery, hope of Europe, hope of the sunrise on and on..........buy the end of the day today for the Monday 1st of everything ramp.
Martial Law (and bank holiday) in Canada/US/Mexico following devastating earthquake:
http://www.whatdoesitmean.com/index1670.htm
Russian Military Warns Of Potential Catastrophic Quake On US West Coast
This is a 2012 article...
Tin foil hats have a tendency to throw off one's sense of time.
The weather is causing quakes? Next it will be global warming's fault.
Forons (Fucking morons)
Sustainable? Nope, but given the shitshow that is the rest of the developed world economies and nary a yield to be had, doesn't surprise me all that much that our markets remain bid
Absolutely. Investors and businesses used to have long-term (generational) plans. Now it's all about nothing longer-term than the end of the current quarter.
geesh, that S&P vs EuroStox chart is another crocodile on the Mara River about to have lunch scene, they're popping up all over the place
http://www.youtube.com/watch?v=zF_e8omT2P8
It's ON like Donkey Kong!
But... but... Window dressing? Why... But... Ah, fuck it - SELL, SELL, SELL.
EUR$ 1.2000 - Coming this Summer!
In the sea of stupid, fake catalysts, window dressing is my favorite....well, that is after Monday...as in, "you can't be short in front of Monday."
And as you row your boat around the sea of stupid, fake equity catalysts, it does make a fellow wonder what happened to all the real reasons to buy stocks?
There aren't many, just sit & watch as Civilisation burns. :) Beautiful.
P.S. AFAIK FED releases its p0m0 schedule for APR today at 1 p.m. - One o'clock p.m., but what TZ?! God damn youuuu, Bennn..!
http://www.newyorkfed.org/markets/tot_operation_schedule.html
The moment there is suspicion about a person's (a bank, a private cartel, a guberment, etc.) motives, everything he does becomes tainted.
I'm surprised that T-10s aren't up 5bps with POMO $5b worth of buying going on today. I guess it's all sitting on the tarmac in Cyprus courtesy of a w/e swap with BUBA and the Fed.
what's the point looking at stock market prices ???? we all know the thing's got nothing to do with fundamentals !
It's amazing how many money managers are making big buck's chasing the stock market right now following the simple minded logic, "Where else ya gonna go?"
How do I get a job like that?
Toss away any morality you may have, then run for office.
Europe is entering the dark ages part 2
And the USSA right on its heels...
But in 2013 we have QE infinity! It is like a rich, retarded uncle saying he will buy my used Chevy for $2000 today, or $3000 next year, or $5000 the year after that, etc. etc. etc.
So why would I not keep that piece of junk and borrow money against it? I guess it all hangs on who will believe my uncle's promise.
SP500 = Cinderella Story.
Uh no, more like SP500 = Little Orphan Annie with Ben Bernanke as Daddy Warbucks.
Just remember that when you're leveraged 20-1, and most everything has far higher leverage, it only takes a 5% loss and youre completely wiped out.
The higher it all goes, the worse it gets.
Just more reasons to keep ZIRP untill at least 2022. At a fucking minimum.