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Sliding German Economy Unleashes Biggest European Rally In Eight Months
Despite dismal data on German PMIs, Italian and Spanish equity markets have had their best 4-day run in 7 months to push back to two-month highs as the exuberance around the world reaches fever pitch once again. The Eurostoxx 600 (broad European stock index) jumped a tremendous 2.4% for its biggest rise in 8 months. EURUSD plunged and perhaps gives the hint that the ECB will be forced to act next week - so what are they going to do? Rate cut? (maybe) Another all-encumbering LTRO? (bank spreads didn't weaken) More direct bond-purchases? (failed abysmally last time - though this shift could be the front-run of that) Doesn't matter... nothing matters. Spanish and Italian bond yields and spreads smashed lower to near pre-crisis spread levels even as Rajoy says things are worse, much worse, than expected. Bad is good, but terrible is way better... but if it's all so 'good' why did investors seek Swiss short-dated debt as a safe haven once again? (hovering at 3-month low rates).
Best day for braod european stocks in 8 months...
and the high beta nations just soared...
and EURUSD seems to be looking for the rate cut...
and by way of a reminder - this is what happened to the bond spreads of LTRO-encumbered banks the last time the ECB acted to flood some more liquidity to the market... (all we ask is - given that the banks have been repaying LTRO, what's the sudden incentive to re-borrow now - knowing full well the subordinating impact and the new template... won't LTRO banks become more stigmatized since depositors know they are more at risk?)
Charts: Bloomberg
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Take me higher, you take me higher...
Because Germany opposes economic stimulus as long as its own economy is doing well, but it will change opinion once it joins in the suffering of the rest of the European camp.
ECB QE is now just a matter of time.
I shit on Bernanke's head and wipe my ass with his beard, then I let the rest of the MOTHERFUCKING criminals at the "Fed" lick my ass clean.
Perhaps this too would cause the markets to rally ?
Computer says no.
Maybe try sucking his c*ck next time?
Welcome to 2013 where bad is good and good is good.
Welcome to 2013 where George Soros gets an email about a rate cut a day before you do.
Hey, I thought he only had Thompson Reuters sub. :-)
It's all good... /sarc
I like to hide out in imagination land.
https://www.youtube.com/watch?v=Umv0lukIzL0
Not exactly. Good on EU-peripheral is good, bad doesn't matter much. Bad on German data is good, good data is extremely bad. Remember: $dax tanking some 2 weeks ago happened after good production data from Germany came in. Did someone say Eurobonds?
Typical.
This is sucker luring at its best.
No suckers left though, none whatsoever.
As the NATO jawboning in Syria grows louder;
NATO Secretary General Anders Fogh Rasmussen said on Tuesday that the military alliance must remain vigilant on the possible spillover of Syria conflicts. "We can all see that the situation in Syria is getting worse. And we cannot ignore the risks of a regional spillover, with possible implications for allied security," Rasmussen said on his arrival for NATO foreign ministers' meeting.
Turkey Monday denied reports suggesting Israel would use a Turkish airbase to prepare for a possible attack on Iranian nuclear facilities.( Akinci airbase.) In return, Turkey would get advanced missile and surveillance technology from Israel, said the report. Foreign ministers slated to meet with Netanyahu are getting Steinitz instead Sources: Azerbaijan mulls helping Israel with Iran attack
Japan's Abe not to be upstaged:
Japan's Shinzo Abe threatens to 'expel by force' Chinese landing on Diaoyus after eight Chinese government vessels sailed into disputed waters
Great book for understanding log-periodic style bubbles like the current stock market. I'm reading it now!
http://www.amazon.com/Why-Stock-Markets-Crash-Financial/dp/0691118507
It's worth noting that the 10y Bund hit 1:20 before this epic ramp, so money was fleeing there as well as the Swiss, even now it is sitting at 1:26 ???
Nothing really matters anymore as capital markets have come under the direct control of the G7 or G20, with assistance from BIS, FED and IMF.
We now live in a controlled world. All we can do is protect our families and try protect our Constitution.
Bad news is good news!
ECB to cut rates and print more. Whoopee!
Bad for real people, good for the gamblers, speculators, and their bribed politicians.
Is the ECB going to keep accepting ponzi euro area bonds for collateral on a new LTRO scheme? I think(if anything) they are looking at lowering rates. It will be a sell the news move for me irregardless of what the ECB does. Same shit different day, with the same results.
Newworldorder, Your first statement is correct...but it pains me to say that the Constitution is a dead document..and the Republic has been dead a long time....all you can do is get over it and move on..."freedom is just another word for nothing else to lose"...Janis J.
I just read a headline from CNN Money that said: 'Stocks Up as Earnings Trump Economic Weakness' .. the first line was.. 'Stocks headed higher Tuesday, as strong earnings and a positive reading on the housing market overshadowed gloomy news about the pace of global growth.'
So curious as I am I went and did a quick run-through of beats and misses in EPS and Revenues on the companies who reported pre-market(the ones that actually gave a number)....
My tally:
EPS: 38 beats, 12 misses, 8 in line ....... that seems to confirm the CNN 'great news' mantra
...but then I looked at the revenue side
Revenue: 18 beats, 29 misses, 4 in line
...but I suppose only some numbers matter...
Germany goes in the tank, increased EU risk for downward recession pressure, and the DAX is up 2.5%. Well hell, that makes perfect sense.
WINNING THE FUTURE! YES!
Yuropean QE would be interesting. Equities are being pumped as a buffer for more bad news to come.
More paper shuffling.
There are no more superlatives to describe this "market"...bottom line until banks are cut off of their carry trade from the Fed or serious war breaks out threatening oil, the banks receive the money and dump it into the stock market - that's all this is. When a meeting happens at 9PM in some basement leather paneled private club in Manhattan where decisions are made that the game is done, there will be a get out before the other guy Lehman week again. Paying back debts is not going to happen at the Federal, state, county or town level. Hasn't been happening at the consumer and small business level either. The Icelandic approach to debt management will prevail. Governments are starting to identify pockets of wealth so seizure can happen as stealthily as possible to keep the "confidence" up. Enjoy your toast while you have it.
I'm o.k. with beans 'n toast for every meal. But, I want freedom in exchange for this. Seems I'll get the beans 'n toast without the freedom though.
They must be loading up with pillows and blowing up the pneumatic mattresses for impact.
What will it be? My best guess is, a major move to spread Pax Americana in the ME.
I changed my account password to something complicated, wrote it down and gave it to my wife to hide. I am not participating. I am 60% cash and 40% PM and crude and standing pat until ww3 starts.
What a subtle horror, to position one's porto for war; but that is how I see it. I am not positioned for NFLX, AMZN or vegas condos.
The blackjack tables in Macau are $20 minimum bets while grannies pour pennies into slots in LV and Tahoe.
FUBAR.
Sorry but why go 60% cash if you expect the world as we know it to end any day now?
Please tell me you at least diversified into fertile agricultural property a bit.
The CBs are all in now...every "wealth mgmt" phone jockey has been oders to sell clients on the benefits of stock ownership versus anthing else.
Kinda the same as "We are here to search your house, go outside". Just delivered in a way where they want you to believe that they are doing it for your own good.
All the markets must be owned by the same alien entity. Spooky it is.
Bad news = Good news because it means more candy from the central bankers...