Gazprom Threat Sends European Stocks Reeling

Tyler Durden's picture


European bond markets, simply put, did not blink at anything this week (and Portugal spreads actually rallied) as the insanity of that segment of the market remains. Europe's high-yield credit market moves to near record low spreads (on rumors of an aggressive hedge fund squeeze). But all of this beggars belief as we see European stocks giving up their post-Putin gains and collapsing today on the good-news-is-bad-news from the US but much more critically the Gazprom threats (which smashed Germany's DAX red for 2014 and down around 2% today).

European stocks have given back most of the post-Putin gains (with Germany hardest hit as it is most affected by any retaliation from sanctions)


European sovereign bonds remain totally unphased


as it's clear the "management" in Europe cares more about the credit markets than the stock market (as opposed to the US...)

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Fri, 03/07/2014 - 12:44 | 4521527 Hongcha
Hongcha's picture

Wow, OGZPY has moved $.07.

The market yawns, checks the New Yorker for a hot new watering hole for Friday happy hour.

Fri, 03/07/2014 - 12:51 | 4521563 Flakmeister
Flakmeister's picture

Oh, Gee, Zippy!

Fri, 03/07/2014 - 12:56 | 4521582 astoriajoe
astoriajoe's picture

the New Yorker?

Fri, 03/07/2014 - 12:44 | 4521529 buzzsaw99
buzzsaw99's picture

fuck the eu [/victoria's secret]

Fri, 03/07/2014 - 12:45 | 4521530 NaiLib
NaiLib's picture

Tyler: To quote Siemens boss: "YOu do not sanction anyone you are dependent on" Europe will probably not saction Russia. Stocks are vulnerable anyway.

Fri, 03/07/2014 - 12:47 | 4521541 Ness.
Ness.'s picture

Another ZH stock's sell-off article - do you buy the low kiddies?  

Fri, 03/07/2014 - 12:47 | 4521544 jubber
jubber's picture

big AH European futures ramp here along with the Dow looks like the CB's have decided that this is closing green, S&P back to flat

 short squeeze coming? wouldn't really want to be long into this weekend though would have expected it to be sold into.....

Fri, 03/07/2014 - 12:48 | 4521547 Balkan
Balkan's picture

Maybe offtopic, wanted to share for interest. Ukraine inherited 20+ strategic bombers. Now one of them is for sale on ebay

Fri, 03/07/2014 - 13:19 | 4521570 sgorem
sgorem's picture

with free delivery anywhere in the world. comes with a crew of 'take off only' trained muslims.........and nuke$ are extra.

Fri, 03/07/2014 - 12:57 | 4521585 adr
adr's picture

Maybe ZH can pool resources. I'm sure one of us can fly the thing. I can think of quite a few targets where that bomber would come in handy.

Fri, 03/07/2014 - 13:46 | 4521803 NoDebt
NoDebt's picture

I got some seat time in a Piper Cub about 20 years ago.  I'm sure I could handle it.  Now, who wants to be the bombardier?

Fri, 03/07/2014 - 12:59 | 4521596 RSloane
RSloane's picture

I'm not sure why but that made me LMAO!

Fri, 03/07/2014 - 14:04 | 4521880 Volkodav
Volkodav's picture

Looks the "legitmate" Ukie govt is already selling stuff to themselves...

Yulia is surely giving short course on this skill for piece of action..

Fri, 03/07/2014 - 15:04 | 4522210 Rockatanski
Rockatanski's picture

word on the street is that a family in ukraine that controls a large stash of ammo placed there by the russians during the cold war has been selling large amounts of 5.45x39 ammo to someone in the USA.


Fri, 03/07/2014 - 12:54 | 4521574 alien-IQ
alien-IQ's picture

I really believe that ZH should have a disclaimer at the very top of the home page which states in BIG BOLD LETTERS that NOBODY should trade any financial products based on the information provided at this site.

Not that I don't appreciate the information's kind of a fast-track to the poorhouse.

Fri, 03/07/2014 - 12:58 | 4521589 Protokletos
Protokletos's picture

Not that I disagree at all, but out of curiousity--what specifically do you mean as it pertains to the particular article?  

Fri, 03/07/2014 - 13:05 | 4521625 alien-IQ
alien-IQ's picture

How many times have you seen a sort of "here comes the crash" headline from ZH only to see the market turn and rip higher moments later?

Look at the headline here and look at the market. Notice a pattern?

I've been reading ZH from back when they were a blog page. It's been educational and fun...but I have seen far too many times their predictive tone about the market be...well, let's be kind and say, not marksman like.

I've learned to not read ZH during the times that I'm trading, which admittedly, I'm trading less and less these days. I agree that the market is a fucked up manipulated train wreck. But that's not really tradable information is it?

Fri, 03/07/2014 - 13:09 | 4521641 Flakmeister
Flakmeister's picture

Tyler like to throw out some market based doomer porn every now and then...

As you know, there are some here that love it as it feeds their confirmation bias...

However, most of the time it has been a great contrarian signal...

Fri, 03/07/2014 - 13:16 | 4521673 alien-IQ
alien-IQ's picture

Yes. Sort of like a Goldman Sachs recommendation: Do the opposite.

Fri, 03/07/2014 - 14:01 | 4521876 angel_of_joy
angel_of_joy's picture

Feel free to spend your money in any direction you see fit.

Most people don't come to ZH for trading tips. There are, as always, exceptions...

Fri, 03/07/2014 - 15:31 | 4522352 Lux Fiat
Lux Fiat's picture

However, most of the time it has been a great contrarian signal...

When the world is about to end according to ZH, AND Bloomberg and CNBC both are running bearish stories (we are only at the beginning of the decline, etc.), that's usually when those diverging mkt internals plays work out nicely.

Fri, 03/07/2014 - 13:15 | 4521670 RSloane
RSloane's picture

You do know this is about EU stocks and their market is now closed for the day, yes?

Fri, 03/07/2014 - 13:20 | 4521688 alien-IQ
alien-IQ's picture

It's about the tone, not the specifics. Not unlike what so many other "news" outlets do with jobs numbers, earnings etc. The headline is always bullish, but the facts...not so much. But since when does this market operate based on facts?

Fri, 03/07/2014 - 13:50 | 4521819 NoDebt
NoDebt's picture

Yeah, but this place was BUILT on doom-porn.  The day I see an article that reads "No reason we can find for markets to go anywhere but up" I'm going to back SLOWLY away from the keyboard, turn and run like hell.

Fri, 03/07/2014 - 13:51 | 4521820 RSloane
RSloane's picture

EU stocks today:  What the article Tyler posted was an offering of an explanation why in terms of the relationship between Gazprom and the EU.

The data that was posted is and was factual.  I did not get the sense from the article that any type of investment advice was being offered, just presenting what happened in the EU markets today.

Fri, 03/07/2014 - 14:58 | 4522176 Flakmeister
Flakmeister's picture

Sure, but it would be far more responsilble to title it:

Market Wrap Up: Gazprom Threat...

As opposed to making it apprear to be a real time reaction...

Fri, 03/07/2014 - 13:58 | 4521857 Volkodav
Volkodav's picture

a little fear is good

btw, someones govt seems to forgot that..

Fri, 03/07/2014 - 13:00 | 4521598 DaddyO
DaddyO's picture

That's what happens to bears in bull markets created out of thin air...

You didn't know that?

Hell, the FED has been telling us this "truth" since forever.


Fri, 03/07/2014 - 13:01 | 4521614 Global Hunter
Global Hunter's picture

i would have been whipsawed today like a monkey with an onion on his belt with our without zh (don't trade anymore).  Thumbs up though because its a valid point, but suspect that history will look back on zh as mainly pretty accurate, they're correct too quickly.

Fri, 03/07/2014 - 13:14 | 4521665 alien-IQ
alien-IQ's picture

I agree that history will prove them accurate, if not accurately timed. But I've found over the years that the tone here does get in your head if you spend a lot of time reading the articles and comments posted. Their arguments are persuasive, well documented and logical. Perhaps that's the problem. You can't apply a logical analysis to an illogical event (the market).

Fri, 03/07/2014 - 14:05 | 4521889 angel_of_joy
angel_of_joy's picture

The Way Trading Works for Dummies

They offer the data.

Timing is all yours...

Fri, 03/07/2014 - 17:24 | 4522892 Lux Fiat
Lux Fiat's picture

Part of growing as a trader is improving your ability to see things for what they are, and how they really work.  Otherwise, you keep getting "unexpected" and often frustrating results.  I don't go looking for tips, but I appreciate a news source that while having biases, usually has them aligned with "real world" machinations.  I continually run across items in ZH articles that that from my viewpont could have major ramifications, but when I surf over to other financial sites, all I hear are crickets on things of longer-term significance, or the item is buried at the end of an article, and treated dismissively. 

Fri, 03/07/2014 - 13:12 | 4521652 mac768
mac768's picture

absolutely correct, until the music really stops

Fri, 03/07/2014 - 13:46 | 4521804 ChargingHandle
ChargingHandle's picture

that is until the strings are too tight to be pulled anymore

Fri, 03/07/2014 - 12:56 | 4521577 skwid vacuous
skwid vacuous's picture

and the dow rips 45 pts. off the lows, lol...

Fri, 03/07/2014 - 12:58 | 4521592 Quinvarius
Quinvarius's picture

It is Friday.  I doubt that the Fed and Treasury will allow their frankenfraud project to close red today. 

Fri, 03/07/2014 - 12:56 | 4521578 Quinvarius
Quinvarius's picture

At this point I would like to see Germany nuke DC.

Fri, 03/07/2014 - 12:58 | 4521590 Jack Burton
Jack Burton's picture

Germany is scared shitless by the insane US threats against Russia. There are at least 27 billion Euros in trade for Germany at stake. You wanna see unemployment! Lose that much mutual trade because America has insane neocon warmongers trying to start a war. Spain will lose 3 Billion Euro in Russia tourist trade. How many Spanish lose their tourist jobs when 3 billion is sucked out ot their economy? Russia is not the USSR, stop moveing east with NATO, sign some mutual security agreements. Russians don't any fucking war, but you can not keep poking them in the eye with a stick, those fuckers fight back.

Fri, 03/07/2014 - 13:07 | 4521636 cherry picker
cherry picker's picture

Russia doesn't want war otherwise they would be doing what the USA has been doing in Viet Nam. Iraq and Afghanistan.

Putin declared his intentions on the world stage and to me they seem a lot more honorable than Obama and Kerry's positions


Fri, 03/07/2014 - 13:18 | 4521662 Omen IV
Omen IV's picture

all true - German citizens dont believe any US version of events in Syria or the Ukraine  - especially with the Estonian  call  to Ashton still on the table  - Merkel will not go along with sanctions- So what is the end game? 

Russia via referendum will take east and south of Ukraine in addition to Crimea  – US rattles chains and ends up putting NATO forces in the Western Ukraine  - Russia demands gas bills be paid in advance and calls for debts to be converted to physical assets. EU puts up loans  for the  W. Rump that is left - which is nowhere

So did the USA spend $5 billion  as Nuland said -  to get the western Ukraine as NATO outpost? this outcome was never rocket science so what was the objective ?  Syria as trade to go away?


Fri, 03/07/2014 - 13:20 | 4521687 RSloane
RSloane's picture

This is Syria Part II as far as the US is concerned and its all about disrupting the flow of oil. It is indefensible because its senseless.

Fri, 03/07/2014 - 14:55 | 4522159 Dollarmedes
Dollarmedes's picture

Europe largely did this to themselves, with their Green energy and Red politics. Now, like a crack-whore they are telling us "don't scare off the customer!"

And Germany is the worst of them: not only have they engaged in the same behavior with respect to Russia, they have promoted their economic interests on the backs of their fellow Europeans.


I find it hard to be sympathetic to them.

Fri, 03/07/2014 - 12:59 | 4521597 adr
adr's picture

Can you imagine if your job and life moved like the stock market. Suicides would be off the charts.

You're fired, ten minutes later you're hired, ten minutes later you're fired again.

Fri, 03/07/2014 - 13:14 | 4521663 Itchy and Scratchy
Itchy and Scratchy's picture

You like to harrass ... then u get no gaz!

Fri, 03/07/2014 - 13:18 | 4521676 Rising Sun
Rising Sun's picture

bright sunshine, clear skies, nice day for a missile launch - US will be able to see the enemy very clearly


come to think of it, the enemy will have that same capability


oh well, happy times boy - splat a few ruskies for the mudder-land!!!



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