European Markets Plunge Most In 20 Months

Tyler Durden's picture

Europe plays catch down to credit and the Bernanke/China double whammy. The broad Bloomberg Europe 500 equity index tumbled over 3% today - its worst day since November 2011 and fell below its 200DMA for the first time in 11 months. Europe's Dow (EuroStoxx 50) fell a stunning 3.7% - its worst since October 11 - smashing thorugh its 200DMA and notably red year-to-date. Sovereigns widened dramatically with Italy and Spain spreads +20bps or so. The EUR is having its worst 2-day run against the USD in 3 months. Europe's VIX closes at its highest in 4 months. Europe's high-yield credit market saw its worst day in 19 months and is back notably above its 200DMA. Not pretty overall.

Worst day broadly in 20 months for EU stocks...


as European bonds and stocks by nation have been battered...


Europe's credit market is getting hammered too - with XOver (high yield) back above its 200DMA and its biggest (ex-roll) move since Nov 2011.


Charts: Bloomberg

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NipponMarketBlog's picture



We seem to need some more QE from Kuroda-san....

The Thunder Child's picture



They are going to need to double down to keep this steaming pile afloat.

SheepDog-One's picture

Um....well.....HEY anyone interested in some moar FREE MONEY? No? Not really? 

Uh oh...

lolmao500's picture

But but but! Impossible! The crisis was over!!

fonzannoon's picture

How about that UK 10yr. Impressive. The 10yr Bund too.

swissaustrian's picture

AEX has fallen the least. Greece ftw...

Tsar Pointless's picture

So thinking like a criminal, what entities stand to gain from any "taper"?

Let's see - could it possibly be banks, which are holding onto enormous reserves of easy money, courtesy of Central Banks worldwide?

As bond prices collapse, and yields rise, it will be banks that will be buying up this cheap paper for high yields, as equities and commodities deflate back to their long-term trends.

And banks will once again profit, as they always seem to be able to do, at the expense of humans and other creatures.

SheepDog-One's picture

I guess....well at least I know they won't be profiting from me at all the banks can go take a flying fuck at a rolling donut.

HardlyZero's picture

The Morgan Stanleys and Goldman Sachs, and banks, own lets say $800 Trillion in derivatives.

If they cause market movements and setup their trades beforehand, they might make zillions.

So its the market tipping points that are the creative destruction.

This is why society has difficulty with bankers, they effectively finance the destruction, to their own benefit.

We just watch.

h0oS's picture

Bernanke has left another massive shit in the road and this one is going to stain like gorbachev's dome...

SheepDog-One's picture

Bernank suddenly lost all credibility with 'Puzzled' more rainmaker magicman. 

These guys can say they'll 'ram it back up again' all they like but I think we've seen paradigms shift bigtime here myself.

fonzannoon's picture

I think we have Barfaroma telling us we are closing well off the lows yet again.


kito's picture

Dow losses losing and silver not so much....

gjp's picture

yep, while gold just goes lower and lower.  I don't see anyone losing control here.  And I wish I did.

Ham-bone's picture

watching the "stawk market" is looking in the wrong the bond yields cause if those can't be brought "under control" then the curtains are on fire.

This is the moment all metalheads have been waiting for...Fed starts losing control of yields and is forced to do what it does, print to bring yields ever lower.  And complimentary dollar ever lower.  We'll see how it plays out and if a reliever is brought in from the Keynesian bullpen to run the Fed through the next phase?

Ham-bone's picture

To all those who need to roll over debt (after doing so for 30yrs @ ever cheaper yields) - the tide has turned and CRE, JUNK, etc will go in smoke first but so many to follow.

To the sick and decrepit who have been kept alive by refinancing @ ever lower yields, to the marginal who showed profits by the same - judgement day has arrived if Ben can't put rate jeannie back into the bottle.

THE DORK OF CORK's picture

A killing field.


Its important to understand that Europe is dead.............its over.

The place is now a swamp....indeed it was always a swamp.


The last time Ireland put up a fight against the darkest fucking banking forces ever seen on this planet and even in victory they still won.

However when they take everything they will lose...........that end of days is all we have got now.



There is no such thing as a European nation.

WTF do you mean ?

We are but jurisdictions of the banking system.


The Master's picture

PPT coming in strong right around lunchtime when the traders are gone.  Classic

thunderchief's picture

Ben means it this time, by jj jjaa jjjust wait and

JuliaS's picture

My gold-plated bar of tungsten just took a step closer to its intrinsic value.

Seasmoke's picture

We had a chance to kill the banks in 2008. Paulson lied and Congress buckled. Now it's too late.

Bully's picture

Not much being written article-wise on gold and silver in here. Uh-huh.

Element's picture

Get Derbanke and that ECB GS-guy on the phoney, we're gonna have to get this thing pumped-up with hot-air - pronto!

paddy0761's picture

$3BIL+ POMO about to kick in. Going green (or very close to it) by the close.

the not so mighty maximiza's picture

POMO cannons ready aim FIRE!!!!!!!!!

Never One Roach's picture

Luckily my funds are safely on home shores where there's Peace, Justice and the American funds are in the strong "Motor City" ...industrial center of the North USA.....they are in Detroit much safer can you get? A Muni for an American City in a country that the fearless leaders brag the recovery is in progress.....housing markets "recovering" numbers, "improving" fact, it's been reported the people are so confident they are even quitting their jobs in record numbers! I am really glad I didn;lt miss this investment after being "locked out" of those Lehman Mini Bond offering (to select clients) and those other highly sough after funds like MFGlobal and Pacific Global......I was lucky some broker called me with this "hot investment opportunity" of these Detroit Munis .


I feel better now.

sbenard's picture

The patina is off the platter!