European Stocks Slide, Close At Lows On Austrian Bank Concerns

Tyler Durden's picture


It appears concerns over Erste Bank are reducing investor risk appetites in Europe despite Draghi's promise to catch every falling knife forever... EuroStoxx Banks closed down over 2% - their biggest drop in 7 weeks. This led to broad weaknes across European stocks (down 0.5% and closing at their lows led by Spain and Italy; and late weakness in Sweden's OMX). Peripheral bond spreads nudged wider. Perhaps most notably the European financial credit spreads widened modestly but remain dramatically disconnected to financial stocks.


European Bank stocks trumbled...


and credit markets remain entirely dominated by Draghi carry technicals... for now...


And heading into the close, broad European stocks were accelerating lower



Charts: Bloomberg

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Fri, 07/04/2014 - 11:57 | 4924662 Cymore Duttz
Cymore Duttz's picture

Bullish!!! They will cash out of EU stocks and come to American indexes! 

Fri, 07/04/2014 - 11:59 | 4924665 kliguy38
kliguy38's picture

Yup... now move along dirtbags....nothin' to see here!! By Monday mornin' we'll have this shit mopped up and shining........

Fri, 07/04/2014 - 12:10 | 4924687 Ghordius
Ghordius's picture

NY having a nice time instead of levitating the whole world's stocks up? shocking

Fri, 07/04/2014 - 13:03 | 4924806 nink
nink's picture

In the US the markets would have shot up on the news of a bank bankruptcy.  Those Europeans are so messed up


Fri, 07/04/2014 - 12:12 | 4924688 Hubbs
Hubbs's picture

To me, a lay person (non economist), it would seem that too much sudden increase money flow from outside into the US stock markets would be a sign that there really is no where else to put one's money. Thus too bullish a climb from here in US equities would be an ominous sign, like the final convulsion before one dies.

Fri, 07/04/2014 - 12:22 | 4924705 DoChenRollingBearing
DoChenRollingBearing's picture

That is a good and yet ominous observation.

Have European stocks moved to record levels like US stocks have?

Fri, 07/04/2014 - 11:59 | 4924666 G.O.O.D
G.O.O.D's picture

It looks to me like the only way to save this mess is for moar brown people to die.

Fri, 07/04/2014 - 12:01 | 4924670 RaceToTheBottom
RaceToTheBottom's picture

Yep Austrian banks must be under stress, they have recently agreed to FATCA rules....

Fri, 07/04/2014 - 12:39 | 4924747 Sudden Debt
Sudden Debt's picture

Can't be.... They gave a shitload of bonuses on newyear to their leaders!

Fri, 07/04/2014 - 12:30 | 4924728 Number 156
Number 156's picture

Ring ring ring... Hello, Christine? Yeah, we would like to discuss your plan for funding...

Fri, 07/04/2014 - 12:38 | 4924742 Sudden Debt
Sudden Debt's picture



Fri, 07/04/2014 - 12:35 | 4924738 Sudden Debt
Sudden Debt's picture

And all the countries are broke and the maastricht treathy doesn't allow money printing.


Fri, 07/04/2014 - 12:45 | 4924760 innertrader
innertrader's picture

As a Trader, all I know is that EVENTUALLY, the fundamentals will dominate.  Just like the false housing boom.... this too will meet reality sooner or later.  Then the BOYS will pull another rabbit out of their hat!  I've been watching this for 50 years and I've learned to never underestimate their control.  However, this too shall end.....  the only question is, will I see it in my life time?  Will I see the BOYS create the "NORTH AMERICAN UNION"?  They truly are doing a great job and I don't see any of us stopping them.  Actually, the really smart traders I know have SOLD out and left the U.S.A., giving up their citizenship (except the last one left too late).  The last one left in 2007.  What am I doing still here?  I guess I think I can, or want to, make a difference.  I'm such a believer in the Constitution that I can't just walk away, even though I know I should.

Fri, 07/04/2014 - 12:46 | 4924762 Fuh Querada
Fuh Querada's picture

-2%? Shit, I'm suicidal. And call me back when Lindsay Lohan's credit spread widens.

Fri, 07/04/2014 - 13:07 | 4924823 XRAYD
XRAYD's picture

Nothing the algos can't fix Sunday midnight, to open bright green Monday morn!

Fri, 07/04/2014 - 13:37 | 4924887 Frostfan1
Frostfan1's picture

I'm sure the markets will reverse these losses on Monday in response to an oppressive government enforcing rules on a bank.  Someone will have to punish these rogue governments.  After all, for higher stock markets, governments are supposed to report to banks, not the other way around........

Fri, 07/04/2014 - 13:58 | 4924935 orangegeek
orangegeek's picture

fuck this makes me happy!!!!!!!!!!!!!!!

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