Safety Bid In Europe With Equities Dumped (Again) From US Open

Tyler Durden's picture

As gold recovered overnight and JPY weakness sparked hope for risk-assets once again, European stocks opened down and rallied for much of the European day. However, just as with yesterday, once the US opened, European stocks decided enough was enough and rolled over quite significantly (led by the banks). Safety was well bid in general in Europe with 2Y Swiss rates dropping further to 3-month lows at -10bps at their lowest! It appears the appeal of European sovereign debt has worn off for a moment among the BoJ as Spanish and Italian bond spreads leaked back wider on the day. EUR strength (and JPY weakness) provided the impetus for US equities to levitate but it appears more like EUR repatriation given Europe's risk-aversion today.


2Y Swiss rates have dropped for 6 days in a row as safety demand has re-emerged significantly...


European Stocks appear to find the US Equity market open a terrifyingly risk-off thing... led by the banks


Charts: Bloomberg

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LawsofPhysics's picture

Some big players trying to force the hand of some other big players.  Careful ZHers.  Keep it up Tylers.  Negative rates "destroy" debt (and savers).  The battle to falsely "price" the cost of capital in the western world continues...

ihedgemyhedges's picture

"Keep it up." Funny, last time I heard that was when my wife and I were dating and she needed it the fifth time that day. Now after 19 years I hear "Keep it zipped up."

Rent, do not buy.

LawsofPhysics's picture

"Rent, do not buy."  -  Yes, everyone wants to be a landlord.  Welcome to the rentier society - " winning".  Two sides to every trade.  Property that is managed well is a great revenue stream.  We have some great rentals, so yes, please keep encouraging this behavior.


WTSHTF and your renters lose their job, you will be losing your "rentals". I would rather rent off you and when it happens. You'll get stuck with the junk and I'll move into a box..

LawsofPhysics's picture

You want to live in a box?  Go for it dipshit. Is that what you call "winning"  LMFAO!  More than half of my rentals are being "rented to own" by employees.  We have some rentals in a college town as well.  The notes are very low compared to the rent.  They keep handing those student loans out too.  Sounds like you are mad about missing the boat or something. Life is about choices dipshit and smart decision making, deal with it. Welcome to fight club pussy.

Jack Napier's picture

(Almost) nobody wants to live in a box, but the 99% will end up there unless they stack metals. If you are relying on rental income for your future prosperity you are asking for trouble. Great place to be for the time being though.

LawsofPhysics's picture

Carefully read my post.  I have employees, working towards ownership.  Ownership at some level is very very important.  In general, owners take better care of property and resources than a rentor.  If they don't, they deserve to lose their ass.  It's called consequences, as in a true market insures that there are real fucking consequences for bad behavior.  Something the current elite and politico know nothing about. Execute every last one of them.  Nothing changes otherwise.

firstdivision's picture

Rent, do not buy.

I apply this philosophy to women as well.

Dollar Bill Hiccup's picture

No worries, US Mkts will erase all loss, and it's not even a POMO day. All hail Consumer Staples, market leader!

Vol Killer. Kevin Henry was out getting hammered last night, is now safely strapped in.

TeamDepends's picture

Hillary/Michelle 2016  It Takes A Vagina

Abraxas's picture

Vagina for 2016. A bisexual in 2020. New King David in 2024.

Manthong's picture

A match made in heaven.. er, maybe the other place.

Peachfuzz's picture

I'm voting for Rosanne if it takes a vag. Atleast she promised public beheadings!!

Yen Cross's picture

     Team Abe-Kuroda must be shitting bricks about now. Their currency experiment got pummeled yesterday. I guess they should start monetising garbage from 'Waste Management'.

Dollar Bill Hiccup's picture

EURUSD yay! Momentum ignition ?

Inthemix96's picture

Well look on the bright side,

They bury the cunt thatcher tomorrow, look out for the charge to light here folks, I can give you a cast iron guarantee that this goes pear shaped, real fucking quick, and dont forget this 87 year old dementia suffering cunt claimed more than a half million pound from us last year, hows that work then?

I thought people with dementia didnt even know who they were, never mind how to put a claim form in?  These fuckers are months away from fucking swinging, the whole rotten bastard lot of them.

Everybodys All American's picture

The bright side is if for stupid fucks like you the Brits would have joined the EU and Euro.

Inthemix96's picture

Dont forget Everybodys all,

This stupid fuck is well aware this cunt had christmas lunch every year for thirteen fucking years with Britains most prolific peadophile 'Jimmy the fucking child raping dead person abusing Saville'.  And covered it up boyo.

Go fuck yourself you ignorant clown.

Abraxas's picture

Soulless bitch, Maggie was.

gjp's picture

And US equities are off to the races again.  Save yourselves, sell your hard assets, buy Amazon and LinkedIn!

Arius's picture

APPL - cramer recommended ... cannot lose ...everyone needs an ipad ... lots of hedge funds are already committed!

HulkHogan's picture

Sell in May, go away.


I just moved to cash equivalents.

razorthin's picture

May may or may not have anything to do with it.  But I can tell you, technically speaking, you are wise.  Reassess at IWM = 87.

FieldingMellish's picture

Statistics say otherwise. Moving from stocks to bonds at the beginning of May and returning at the end of October has made no improvement over buy and hold for the last 20 years.


"In summary, evidence from crude modeling over the long run suggests that stocks mostly do better during November-April than during May-October, but (with reasonable assumptions about return on cash, dividends and trading frictions) buying and holding stocks generally outperforms a “Sell in May” market timing strategy."

razorthin's picture

I think you mean to address the Hulk.  I apply no global, seasonal rules of thumb when more granular technicals say otherwise.

rubearish10's picture

How ignorant and stupid to not BTFD yesterday.

thismarketisrigged's picture

i hope this crash happens during obamas presidency, and not when the new guy takes over in 2017.  i want obama to go down as worst president ever, hate this bastard.


what time do the u.s markets erase all there losses from yesterday? i say by the open tomm, bernanke is a criminal, he must be put on trial

WTF_247's picture

No worries - US market is going to get back 100% of yesterday.  Already undone 75%, bid and hold until last 30 min and futures are +35 to rescue the day fully.  Tomorrow would be push back to 1590s.

There is nothing that can stop this level of stupidity except for it to collapse on itself.  If the Fed is in there aggressively bidding futures it maybe a very long time until that happens.

20834A's picture

    I must be a bad person. I find myself rooting for a total societal collapse, even though I'm well aware that hundreds of thousands innocent people will die/be hurt. I don't even care if I'm one of the ones who lose money or die.

I've spent years politicking, emailing, making phone calls, signing petitions, and even being in a few class-action suits trying to avoid this very place we're in right now. All to no avail.The future, as it stands now, is a very dark place. I no longer have hope that this dark future can be forestalled by any means except a huge reset. A reset would be as dark, but at least lead to hope that it might clear the clouds for my great grandchildren...

Abi Normal's picture

A reset indeed!  It would be dark, and agony would be the result...not sure if it would help, too many morons out there!  One day a reset will happen, just a matter of time until the house of cards worldwide falls.

Artful Dodger's picture

So this is the day when the market makes you feel like a fucking idiot for being shanked yesterday, SPY now up $2. Jesus I get tired of the market's inability to take anything off and stay that way for a few sessions. And then there's Japan, which escaped the carnage altogether.

Still an un extraordinarily unhealthy market. Japan goes up 25% on words.

The volatility, up and down lately, is stupid, showing the only ones moving this market are going all in one way or the other every day and everyone else is either long term in, or long term out. No real liquidity in less liquid names where I sit, and what there is, is completely stolen by algos on invisible markets, and/or invisible limit orders that print in front of me by a cent. I can't believe the regulators allow this liquidity thieving (where I am). It's fucking free riskless money to the punk "entrepreneurs" who think they're successful because they pay for exchange access to ALWAYS get first fill. Yeah, you're a genius, get blown (up). The regulators should be enforcing ONE VISIBLE MARKET for everyone. (Um yeah, I realize that elicits LOLs.)


spine001's picture

Guys/Gals, my professor of Financial Analysis first taught us the basics of analysis using models and the rational market theory. Now he is destroying everything he taught us and is having us read and testing us on the book "irrational exhuberance" by Schiller. Highly recommended read for all Zhedgers!!!

Schiller with incredible foresight is describing exactly what is happening now and why it is happening...

Until next time,