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European Stocks Dive Most In 10 Months
There was quite a bit of dispersion among European equity indices today (with Italy worst and Spain actually holding up - albeit down 1.4%) but the European equivalent of the S&P 500 (the BE500) dropped 2% - its biggest single-day plunge in 10 months. Credit markets - just as in the US - have been warning of a disconnect for two weeks and today's equity dive has more than halved that divergence. European sovereigns are wider by 10-15bps. Europe's VIX is over 2 vols higher at 18.4% (its highest in a month). European financial stocks dropped by their most in 3 months and European high-yield credit worsened by its most in 3 months. A late-day ramp made things alook a little better than they had earlier with a 100 pip rally in EURUSD off earlier lows seemingly providing some help.
European stocks dropped their most in 10 months...
as stocks caught down to credit...
Charts: Bloomberg
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American stocks, however, are now FLAT!
That's the free market economy for you. Free market means it only ever goes up. Buy now, or be priced out forever.
Ole Kevin Henry has been busting his nuts trying to get the S&P back to green. Yo, Kevin. Too many holes and not enough appendages.
China slowing, Fed gone wild, Nikkei diving, Japanese sovs INCREASING, housing bubble in US West ... what else can go wrong? See this guy's charts.
http://confoundedinterest.wordpress.com/2013/05/23/bernanke-hints-at-pulling-out-early-china-slows-nikkei-swoons-7-3/
Best way for EU banks to put the trillions in USDs that Ben has given them is to buy US equities and hope that levitation keeps their own markets stable.
that was last year and I doubt it was for US equities. imho more for megabank salvage
And American exchanges will be green before the day is out. It all makes perfect sense. Where else are you going to put your money now? Europe, Japan? Really?
BTFD!
So when international markets decline, American should rise "because of inflow of money".
But when international markets rise, American should rise as well, due to "great news", "bargains", and "global recovery"?
Besides, yeah good luck with your American banks sitting with - what - 95% of all counterparty risk exposure, if Europe and Asia starts popping.
It's "American Exceptionalism" — reality applies to everyone except us.
Until one day, when we get the mother of all bitch slaps.
Show me three back to back to back down days in the (US) market and then maybe I'll sit up and take notice.
Agreed, this is all just for the optics. The Fed and the TBTF own most of it now and they won't be selling anytime soon. From Jan Hatzius yesterday; 2. On the strategy for winding down the Fed's portfolio, Bernanke noted that the Fed could exit without selling securities.. (my bolding). IMO Bernanke knows QE has been a complete failure and he also realizes the bubble he's created. He's given the word that the presses are idling down but he and the Banksters won't let markets fall because they haven't figured out how to turn the billions in paper profits they are sitting on, into realized. I would not be surprised to see months of phony, manipulated, range bound markets while they try to figure out a way to put the toothpaste back in the tube.
+1
Cog's,as the Nikkei fell over thousand pts I remained silently seated and when the Dow & S&P opened almost 1% lower I practically jumped out of my seat..........moar green bitchez!
And we will have food wars commencing soon http://www.eutimes.net/2013/05/russia-warns-obama-global-war-over-bee-ap...
Nice find.
Will stinger missiles be involved? </bad pun>
firstdivision,
Very interesting, but at the end of the day this is just talk on Putin's part. Putin could have done many things over last several years. Again, nothing. He can send strategic bombers over UK and send old derelict navy ships into Mediterranean with no action.
Knowing Russian history, Putin is playing to his domestic forces.
and of course u.s markets are flat.
if we are not going to sell off, just might as well end the day green just so i can laugh my ass off at this blatant ponzi scheme being run by bernanke and his fucking criminal friends.
and fuck u james bullard, for saying that u see no end to qe anytime soon and it should continue. i hope u die a horrible death u fucking pig.
I talked to people who interviewed the US central bankers this month => They want to exit QE, and for sure want to slow/stop buying this year, but they are scared to death... Literally. Some of the FED members internally admit that they have no clue if their policies do/do not have impact on macro-economic numbers, but to the outside world they want to remain "tough" and keep the illusion of being "in control". You would almost feel sorry for them except for the fact that i gave you a green point ;)
The great news is that the US market remains wholly unconnected to anything resembling reality and will not be effected by this, or anything else, for that matter.
I believe that's called whistling past the grave yard.
Its almost noon EST and the DJIA is poised to go green. That was not whistling you heard, that was a 200 man choir belting out Handel's "Hallelujah Chorus". If the goal is to avoid benchmarking anything to reality, there is much cause for celebration. Therefore much rejoicing in DC and NYC can be heard.
doc you have to reconsider your end of year end game.....this game is only in the 7th inning................time for the 7th inning stretch................nothing more................
so how about you convert those innings in a time frame so it doesn't sound so bs.
If Kev' closes green today, Abe's boy takes over for a green Nikkei overnight.
Euro making new highs. This is fucking Simple Jack-land.
Just to confirm: NKI blew up overnight, bonds blew up overnight, and SPX headed to positive territory. Ok. Just wanted to check.
Yep. All is well here in The Land of the FleecedTM.
SSDD. BTFD.
Yep, but there seems to be a different twist this time. The 10Y UST is not playing according to the old playbook. If you overlay the 10Y UST yields and ES charts they are moving almost perfectly in tandem right now. Stocks up and bonds down. While this in itself isn't too big of a change, it is the magnitude of the correlation and the level we are currently at, north of 2%. I think TBTB pushed this market up today to see how everything would react. Right now they know they can't let rates get out of hand (see Japan's issues overnight) so if this correlation holds together then they will have a tough decision to make. Does the Fed protect the stock market or the bond market at this point. It looks like it can't do both. We all know that rates north of 2% will have a significantly adverse effect on the "recovery" and kill the economy and their bullish meme about our economy getting better (all bullshit I know, but they have everyone believeing it). My guess is they let the equities go to get yields back into mid 1% range.
Are the bond vigilantes rearing their head after all of these years? Here and in Japan? Stay tuned, IMO.
Dow and Sh!t and P1$$ ... mmmmmus..t go gr.. gr .... green
No ESF/PPT in europe. Dow and SPX about to go green. AMAZING.
Behold, I am the great and powerful Oz. errr...... I mean Ben.
we are fucking green. cant fucking make this shit up. just cant.
this would not even pass for a film in hollywood as it is to unreal to believe.
unfuckingreal - the PPT just keeps on truckin' and the Dow goes green despite crashes everywhere
See ya later Banzai...nice knowin' ya. "and the cryin' phuckin' shame is i gave a phuck." this party's over...on to the next one. When does the market open again?
what market is that you speak of sir?
i dont see any markets, i see lots of ponzi schemes.
I knew that it was no market I am looking at! But independant confirmation is always welcome. ;-)
Do not forget - today is 3.5 bln POMO day - margin it 1:10 and you get 35 bln injection to ES futures
Sell that Vol Kevin! http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=1&chfdeh=0&chdet=1369339200000&chddm=391&chls=IntervalBasedLine&cmpto=NYSEARCA:XIV&cmptdms=0&q=NYSEARCA:SPY&&fct=big&ei=QT-eUcCXDaWI0QGdHA
Draghi on at 3.30 pm today to help Operation Ramp @ 3.30 with his "you can believe me" rhetoric. Bears never learn, and there are many of them right now squealing with their foot in the trap.
I definitely recall that you did your best to warn them yesterday.
the u.s has to finish green, because if we sold off, then asia may be down again tonight, but all i will read on cnbc tonight under asia is '' asia stocks set to rebound followed by strong u.s lead''.
fuck this shit, we as zerohedgers must put bernanke in jail, because nothing will happen otherwise.
p.s, i really wish rick santelli was not off this week, because he would be something to listen to with todays action. unfortunately, now all we will here is how fucking resilient this market is.
its amazing how they turned it green so fast. by 1150 we were green. s&p 20 point loss, nasdaq 40 point loss, dow 115 pt loss, all wiped away in minutes.
also, who wants to fucking slaughter that stephanie link bitch? everything to her is buy buy buy, she thinks everything is great, i want to punch her so hard in the face.
also, if the economy is so good like all of these people say on tv, why do we need the fed?
i am losing my mind, this is such utter bullshit, how this is not being investigated is beyond me
LMFAO - the Dow Jones just went green.
More gong show please.
orangegeek,
It's green because the environmentist call for green stuff. In the fall it will be brown.
None of this $hit makes sense to me anymore.
I was about to type the same but you beat me to it.
JOKE!!!
See, the US stawk mockit is the world's 'reserve' stawk mockit. The whole world will be sucked in because their stawks can go up AND down, while the worst the US mocket does is go flat for a day or so.
It's making a shiver go up my leg just seeing our powah.