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Worst Spanish Unemployment Ever Extends Europe's Best Stock Run In 9 Months

Tyler Durden's picture




 

The EuroStoxx 600 - one of Europe's broadest equity index - is up almost 5% in the last 5 days, the best such run since July of last year and is trading close to levels not seen since June 2008. Of course it is we hear you scream, Spanish unemployment is worst and getting worster, the core economy (Germany) is fading rapidly, Italian growth forecasts are being slashed, Europe's growth forecasts are being significantly lowered; have no fear Draghi is here (with what? we implore?). While stocks in Europe were off to the races once again, for the second day in a row, Spanish and Italian bond spreads leaked wider (after their record-breaking run recently). EURUSD also took a big stumble today, from around 1.31 to below 1.30 on Goldman's note on ECB's albeit 'cosmetic' rate cut.

EURUSD...

 

EuroStoxx 600 Surges...

 

and Bonds have been bleeding as stocks go from strength to strength...

 

Charts: Bloomberg

 

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Thu, 04/25/2013 - 11:54 | 3498057 Shizzmoney
Shizzmoney's picture

Repeat after me:

Massive Unemployment is good for markets

Massive Unemployment is good for markets

Massive Unemployment is good for markets

Massive Unemployment is good for markets

Massive Unemployment is good for markets

Massive Unemployment is good for markets

Massive Unemployment is good for markets

 

Thu, 04/25/2013 - 11:57 | 3498066 rockraider3
rockraider3's picture

Unemployment sounds so negative.

Let's call it Temp-To-Perm Non-Employment. 

Thu, 04/25/2013 - 12:28 | 3498146 Smegley Wanxalot
Smegley Wanxalot's picture

"Alternatively Engaged In Unmeasurable Socially Productive Endeavors" (like getting high or sexting their senators on their obamaphones)

Thu, 04/25/2013 - 12:46 | 3498372 Ahmeexnal
Ahmeexnal's picture

Who cares, Real Madrid made it to the UEFA finals.
That's all the sheeple care for.

Thu, 04/25/2013 - 12:59 | 3498429 WayBehind
WayBehind's picture

Actually both Barcelona and Real just got spanked by Germans AKA Bayern & Dortmund

Thu, 04/25/2013 - 13:10 | 3498526 Ahmeexnal
Ahmeexnal's picture

Hmmm....that seems serious.
Sounds like Germany is the one about to collapse, hence the need to keep its sheeple glued to the TV set.

Thu, 04/25/2013 - 11:57 | 3498074 camaro68ss
camaro68ss's picture

Why didnt the Centeral Banks try this in the 30's? they could have been doing as good as we are. what fools. Rally on bitchez!!

Thu, 04/25/2013 - 11:58 | 3498081 JPM Hater001
JPM Hater001's picture

<-----I Feel Your Pain

<-----I'm Causing Your Pain

Most likely Rajoy Quote

Thu, 04/25/2013 - 12:03 | 3498111 slaughterer
slaughterer's picture

The pain in Spain comes mainly for the lame.  

Thu, 04/25/2013 - 12:05 | 3498115 JailBank
JailBank's picture

Mrs. Pelosi (hottest member of the House BTW) stated it best when she said unemployment checks were good for the economy. "It creates jobs faster than almost any other initiative you can name."

 

You can't argue that logic. Welcome to the recovery Spain you should be seeing your nations unemployed entrepreneurs start ups hiring soon.

Thu, 04/25/2013 - 12:54 | 3498374 THE DORK OF CORK
THE DORK OF CORK's picture

Well it really is.

It increases the ratio of profits over wages.

The more people you dump on a monetary scrapheap the higher your returns.

Lidl & Aldi supermarkets have record profits in Ireland.

They can totally destroy the corner store (which employs far more people) or even the more conservative supermarkets.

This is how Europe works or does not work.

Thu, 04/25/2013 - 13:09 | 3498527 dogbreath
dogbreath's picture

I haven't been to Ireland sorry to say but isn't Aldi a low price chain.  They seem to be in Germany.

Thu, 04/25/2013 - 14:00 | 3498787 THE DORK OF CORK
THE DORK OF CORK's picture

Their business model depends on a low level of cash flow within its host.

This pushes down both external energy /good prices and labour costs.

This means they can import stuff while domestic produce is destroyed.

All supermarkets have done this - its just that the above operators are of the most extreme variety

Old Irish high streets are now dead zones .....

 

Try to get your head around post 1980 ~ European & indeed American society.

 

 

Before euro , before 1980 /86.

Before EMU :Euro countries internal goods cheap / external (China ,Germany, oil ?) goods expensive relative to cash flow.

During euro bliss years : Internal goods expensive / external goods cheap relative to cash flow

Euro 9th circle years : both internal and external goods too expensive for now limited level of cash flow….people s lowly go bankrupt.

 

 

 

Thu, 04/25/2013 - 16:10 | 3499413 dogbreath
dogbreath's picture

interesting.

I live in a resource based economy and within it different sectors go up and down but overall things are good except everything is expensive except maybe oil. Rent, real estate, auto's, labour it all expensive.  We seem to have to much money credit chasing to goods higher.  Business rents are high and all this is passed on to the consumer so the more things cost the more things cost,  But you can't hire someone to sweep the side walks.  Entitlements have destroyed the labor market.  While here I think things are Ok i would say its advanced debt slavery.  I am curious what a 2008 style event will bring.  Slaughter??

Thu, 04/25/2013 - 11:55 | 3498060 jubber
jubber's picture

what happened to the planned riots , anyone got a live feed?

Thu, 04/25/2013 - 12:02 | 3498101 toys for tits
toys for tits's picture

They're all taking a nap, then they'll get around to it.

Thu, 04/25/2013 - 12:33 | 3498286 Curtis LeMay
Curtis LeMay's picture

Here ya go. They just started at 5:00 PM Spanish time...

http://www.livestream.com/spanishrevolutionsol

Thu, 04/25/2013 - 14:34 | 3498945 JDFX
JDFX's picture

they're just starting to rattle the fences.

Thu, 04/25/2013 - 12:10 | 3498145 Edward Fiatski
Edward Fiatski's picture

Do they not have cake to eat?

Thu, 04/25/2013 - 13:12 | 3498537 blabam
blabam's picture

Organizing a siege via Facebook? Lazy dumbfucks.

Thu, 04/25/2013 - 11:56 | 3498068 astoriajoe
astoriajoe's picture

It always seems to work pretty well for the Roadrunner.

 

Thu, 04/25/2013 - 12:02 | 3498097 bonzo112358
bonzo112358's picture

Of course it will rally.  This means more stimulus for the big banks.  They think giving money to the big players will somehow help out the little guy.  So stocks rally.  Until the little guy gets fed up enough to break out Madame la Guillotine, the people that the QE et. al. are helping will keep the market going higher.  And, of course, like the dumbass I am, I will short it.

Thu, 04/25/2013 - 16:45 | 3499553 zipit
zipit's picture

Let me fix that typo for you: "Giving money to the big players will help out the big guy."  There.

Thu, 04/25/2013 - 12:02 | 3498104 youngman
youngman's picture

they are losing jobs...but they are not removing the constraints on hiring new employees..that still costs the same...and its very high....that is why the under the table economy growth.......until they make it easier to hire people at reasonable costs will this ever change....

Thu, 04/25/2013 - 12:05 | 3498120 youngman
youngman's picture

Asia is becomeing the new growth engine..and the Western world is becoming the new third world economy..just like China was 40 years ago....just a lot of people who don´t make to much money...

Thu, 04/25/2013 - 12:06 | 3498126 Haager
Haager's picture

who needs to work? Just put your money into stocks - especially in Spain or Germany - and everything will be o.k. (M. the corzinias Rajoy)

Thu, 04/25/2013 - 12:09 | 3498138 Edward Fiatski
Edward Fiatski's picture

It's as if the markets are implying some sort of grandiose European QE is in the works.

There's room for disappointment.

Thu, 04/25/2013 - 12:08 | 3498140 piliage
piliage's picture

Jobs are so passé. Who needs them? As long as the ECB and Merkel say everything is ok, it's BULLISH!

Thu, 04/25/2013 - 12:14 | 3498178 maskone909
maskone909's picture

Keanu Reves to P swazee: I... AM...  AN FBI AGENT!

P. Swazee:  Yeah, Iddnt It Wild??

 

lol

and thats the markets for ya

Thu, 04/25/2013 - 12:15 | 3498181 Archetype
Archetype's picture

Yeah, the Swedish stockmarket (OMX) rallied on terrible earnings reports today. For example the truck manufacturer Volvo, turnover shrank 25%, operating profit came in at 482 m SEK (expectations was off by 1.7 bln SEK (WTF?)) 5.5 bln SEK less than the first quarter last year, 4.1 bln SEK in profits last year turned to a loss of 248 m SEK.

Yet, the guidance was positive and the stock was up over 3% in the opening call. Every single guidance have been positive for the last year and yet everything keeps getting worse, But who knows, they might be right just this one time so I better buy some stawks... /Sarc

Thu, 04/25/2013 - 12:21 | 3498209 Anglo Hondo
Anglo Hondo's picture

Spain:   ”The number of horses sent to slaughter in Spain by owners and breeders hit 70,000 last year, more than double the 30,000 recorded killed by the country’s Agriculture Ministry in 2008.”

Bring on the Lasagne.


Thu, 04/25/2013 - 13:08 | 3498508 Overflow-admin
Overflow-admin's picture

Bon appétit!

Thu, 04/25/2013 - 13:13 | 3498545 orangegeek
orangegeek's picture

Spanish horsemeat wrapped in Chinese River bacon.......mmmmmmmm.

 

...topped with spray cheese.

Thu, 04/25/2013 - 12:49 | 3498379 HD
HD's picture

Mark Cuban just took down CNBC...while on CNBC. The music immediately started to play and they went to commercial.

 

Thu, 04/25/2013 - 13:40 | 3498685 Crabshacker
Crabshacker's picture

You know it's bad when things go worster!!

Fri, 04/26/2013 - 01:31 | 3501356 MoneyChasingReturns
MoneyChasingReturns's picture

The Greek People are EU citizens, nothing stops them from appearing in Oslo and getting a great Professional career.

Nothing stops a young Greek from traveling to Sweden or Germany and going to University at very low cost to get a professional career.

People are upset thier free healthcare, early pensions, and other non sustainable social services are gone.

Those who take personal responcibility and act like migrants with hope and drive do well in the EU.

I have no pity for a young Greek or Spanish youth who is becoming frusterated applying for entry level construction jobs saying he can't find work and giving up.

Greece is becoming like Hungary, all the smart people left for Switzerland and Germany and all the leftover unmodivated people remain.

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