European Stocks Plunge, Catch Down To Credit

Tyler Durden's picture

Yesterday it was all fixed, Cyprus was storm in a teacup, and as Barroso noted "the worst of the crisis over." It appears reality sunk in today as PMIs continue to disappoint and Europe's banking system implodes. Credit markets and financials have been flashing warning signals for a few weeks and once again European stocks (led by financials - mostly Italian - cough BMPS cough) were limit down and halted everywhere (with the broad EU bank index -3%). Italy's FTSEMIB is now -0.8% on the week (giving back all of yesterday's exuberance and some) and Spain is close behind. European sovereign bonds retraced their gains and ended slightly wider on the day. Swiss 2Y rates dropped (on safety bid) to -2bps (ahead of Bunds at 0%). EURUSD bucked the 'weak' trend and strengthened on the day back up to 1.2850 while Europe's VIX pushed back up to 21%.



and the implicit bid in European sovereign bonds is evident when compared to stocks and the EUR... (perhaps the market is slowly realizing that OMT is 'conditional')... EURUSD (orange), Spain Stocks (green), Spain Sovereign bond spread (red)...


and of course, EU Macro data continues to slump...


Charts: Bloomberg

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DaveyJones's picture

"yesterday it was all fixed..."

isn't everything?


fomcy's picture

DO you SEE that GOLD DROP???? $6 in 2 seconds?

RSBriggs's picture

No.  I only check the price every couple-of-months when I'm about to buy some more, just so I have an idea of what spot price is.

Harbanger's picture

I see that, and without cause. It's our planners smacking down paper PM's to control "perception" in oder to hide our real economic problems, while Russia and China are loading up on Physical.

FoeHammer's picture

You got it, Harbanger! Don't forget about Turkey too. They also like to slam it before large orders come through. Have witnessed that on several occasions. Big drop last night during Hong Kong hours as well

angel_of_joy's picture

You can load on physical too...

BTFD ?!?

smlbizman's picture

you know what i think? no what....i think the real price of gold is what the sells it when a ase proof is 62.95, it aint the fucking 5 dollars of gift wrap, if that ......and i quote proofs cause they dont have any uncircs....i guess why stock them..if nobody wants them.....i cant tell you about gold eagles proof or other....cause they dont stock those either.........and because its the govt. you know they are losing money at that price....

debtor of last resort's picture

Paper gold does not DROP. It BURNS.

DoChenRollingBearing's picture

Where Europe leads, I fear we will follow.  Take heed, there is still time to protect yourselves.

Winston Churchill's picture

You mean try to. Uncharted waters between Scylla ,and Charybdis.

DaveyJones's picture

oh, if it were only two hazards

and if we could only dump our monsters in the ocean

Bicycle Repairman's picture

"and if we could only dump our monsters in the ocean"

You mean like Japan?

graneros's picture

You are correct. Europe is our own canary in a coal mine.  Ignore what's happening in Europe at your peril.  If you haven't done so already be ready to pull as much of your cash out of the bank as you can at a moments notice.  Then spend it. Quickly.  Buy anything and everything before the cash is useless.  Weimar is barreling down the pike at us.

Harbanger's picture

Fear not where Europe leads, our commander see's the trouble ahead, and is protecting us by banning our weepons.

kevinearick's picture


CApital would rather torch itself than cede, which works out just fine for the young people.

Smegley Wanxalot's picture

When Barroso said it was all fixed he was telling his wife he had himself neutered.

Archetype's picture

Yesterday the news was crap I was short stocks didnt care, today the news was crap I bought the fucking dip and suddenly the market starts to care again? Casino winns as usual.

McMolotov's picture

"Strange game. The only winning move is not to play."

FoeHammer's picture

lololol. I've done that with turning Dust on/off to balance losses in miners. Goddamn, guess we need to develop an anti-retail sentiment algo...

Winston Churchill's picture

Looks like pitiful human comprehension is finally catching up with our

communication systems.

As I used say when I used to drink "its all downhill from here".

q99x2's picture

I didn't hear Draghi say it was fixed today. He said that yesterday. Must be down at the CVS on the red phone buying bitcoins again.

virgilcaine's picture

They are losing control of things i believe.

The Carbonator's picture

This is all going to collapse as they are losing control.  I say stock up on as much Lead as possible.  Get anything you can before they outright ban it.

I have been involved in a letter writing campaign to protect the 2nd Amendment.  So far I have cranked out 2700 letters.  I'm fighting for what its worth and the legislation is stalling nationally.

Stacks aint worth nothing unless you can defend it.

virgilcaine's picture

I like the pm's but what is going on with the price of silver.. I know it's most sensitive to credit and economic conditions, if so we are headed into something quite bad! Silver is crashing.

Cyrano de Bivouac's picture

Why are gold and silver plunging?


Balvan's picture

Metals bubble is bursting. Sell your gold for paper and bitcoins while you can.

THE DORK OF CORK's picture

The IEA oil market report oil charts have gone off line...........


See no evil hear no evil I guess.


A epic transfer of european oil consumption is about to get under way me thinks.

ebworthen's picture

Will markets even be allowed to crash?

Will they just halt trading and not allow people to sell?

If they can steal deposits why not halt trading and revalue a stock from $70/share to $35/share after the investment banks have sold what they need or want to?

"Trading halted" and "After-hours trading"?

What a Casino!

Winston Churchill's picture

If you want to find out what a 'no bid' market is,carry on

staying in this POMO  joke. I have e about  $350 left in it., and thats

too much..

ekm's picture

I know exactly the reason why.

Draghi and Benny forgot to do the swaps today.


Don't worry, tomorrow is another day

Cashboy's picture

Have you all noticed how EC - Drago seems to have gone missing since 1 weeks before the Cyprus fiasco and made no comments about the situation ?

The guy has no balls !


Winston Churchill's picture

Probably wants nothing to do with Schnaubles 'final solution".

Michelle's picture

CDS auction tomorrow hence today's selling to raise cash. Happens every time.

americanspirit's picture

They are losing the illusion of control - they never actually had control, just passive populations. It's easy to think you have control of your cattle until they stampede - then you better get out of the way, fast.

Tombstone's picture

We are in the core of the ever blissful socialist craptopia.  Soon, your Bennybucks, dollars, gold and silver will be convertible into the new-order world currency...O'bummerbuxs.   Or as we say here in caveland...Dictatordoubloons.  Your best bet is to become a welfare slave, collect the max of freebies and sit back and watch the world rot away under the decree of Marx.  After the dust settles, you can find a place to live in Euromexichinaca or Iceland if you prefer.

yrbmegr's picture

Europe having a 2008 sad.

Hohum's picture

Stocks are down 1% or so today and TPTB are losing control?  Whatever.