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Despite Dismal Data, Deutschland Dax Does Best In 10 Weeks
The EUR is fading fast (-0.3% on the day) as Draghi re-iterated his commitment to lower, longer, forever, he promises... Germany's DAX was the best performer across the region today as there was a sea of green in European stocks. Even with a late-day drop, the DAX gained 2.3% - its best run in 10 weeks - as Bunds underperformed Treasuries by over 5bps on the day even as exports and production data collapsed. Spanish and Italian stocks rallied but bond yields rose (and Spanish bond spreads rose around 5bps). Portuguese bonds improved around 18bps - marginally positive compared to the collapse in the last week or two - as it seems the market is not convinced that all is fixed again.
Germany's best day in 10 weeks...
but bonds were not following through on the equity strength...
as it seems today was as much a stop-hunt above a quiet friday's highs as anything else...
Charts: Bloomberg
Bonus Chart: The disconnect between a swap-spread-implied model of EUR-USD exchange rates and reality suggests an 'agreement' post QE3 that 1.30 is the holy grail level...
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Costanza market
Ich sag's noch mal (I'll say it again): Prost, Ihr Säcke!
I have a question.... are European companies doing the massive stock buy-backs we're doing over here to keep EPS growing? Asking seriously.
In other news.... Obama just announced that state healthcare exchanges don't need to verify income or availability of coverage at work to get govt. subsidies to buy insurance from the exchange. Not kidding. That really just happened.
I'm guessing there's something else they aren't going to verify- citizenship.
Everyone in the pool. Government-subsidized healthcare for everyone.
"We have to pass the bill to see what's in it."
Isn't it amazing how his lordship changes an existing law whenever it suits him?
Yup.
If you are buying into the state exchanges and paying those exorbitant health insurance fees you are the mule carrying the load.
It's the drawback of the water before the Tsunami comes. Thta's how nature works.
Remember inflation in the summer of 2008 and then what the deflation looked like 1 year later?
We need another report from the engine room! What's the water level now?
10 feet and rising sir!
OK....but is it rising more or less moderately??
Well....I don't know sir, we're not all dead yet down here anyway.
YES we're DOING BETTER! Strike up the band on deck free booze for everyone YAY!!
Come help me rearrange these deck chairs.
So looking at DAX and U.S. Markets a lot of people must be betting that central banks will just keep printing and easing.
Battle between equity pumpers and bond vigilantes?
Ben? Draghi?
Despite Dismal Data Deutschland Delivers Dandy Decaweek
Europe just trying to catch up with US markets. They start to get worried about reality for a bit, look across the pond and see everything is ok in la-la printing land, and realize that the gotta buy to catch up. There's a long way to go, US stocks are about 50% more pricey than European ones. And some European companies actually make stuff! And the US Fed can't let a crisis blow up in Europe because it would be a matter of hours before the contagion took the US down too. US Fed underwriting everyone, except it's only the US stock market that is pricing it in ...
there were good news:
german car sales in china have a plus. all else down but german cars in china made it all good
dont wanna say that made 2.3 % but there were good news.
Well you should know you have the FED wie have the ECB. So what could possibly go wrong?
So the algos love that 1.30 level eh?
Dax is a performance index containing dividends and distributions. The Kurs-Dax is the real German stock market index comparable to S&P or Dow.
http://finance.yahoo.com/echarts?s=^GDAXIP
The Great Game of Musical Chairs continues.
Fundamentals and valuations mean very little in the short term, so contrarian investing is one of precious few options left for investors:
http://nipponmarketblog.wordpress.com/2013/07/05/contrarian-investing-ho...