Europe Tumbles As Banks Lose All 2014 Gains

Tyler Durden's picture

Broad European stocks are down over 4% in the last few days but that hides the carnage among the most exuberantly excited names on the way up.  Portugal, Spain, and Italy have been battered in the last few days (despite everyone explaining how Portugal is so small, contained etc..). Portuguese bond spreads spiked 25bps today as the central-bank-inspired coupling of sovereign-health and banking-system stability drag each other down (Spain and Italy jumped 9bps higher in risk). European bank stocks have cratered and are now negative year-to-date.


European Banks red YTD...


As the high-beta equity markets collapse...


Portugal bond spreads blew 25bps higher on the day (despite someone's best efforts to rescue it in the middle of the day)


Leaving them at 4-month highs and its biggest 3-day spike in a year...


Don't worry though - the people on TV told us that it's all contained (except that doesn't explain why Spanish and Italian bonds and stocks are dumping too).

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pragmatic hobo's picture

somebody is doing btfd ...

AccreditedEYE's picture

Exactly. The Euro equity benchmarks all closed off the lows. Red is not tolerated. By Friday people will be saying "what's Portugal"?

crazybob369's picture

He was propping up the entire Portuguese banking system all by himself. After his World Cup performance, I'm guessing severe pay cut. The banks are simply responding to that.

MountainsRoam's picture

I got a feeling the BTFDers are about to get seriously burned this afternoon or Friday.. The European problem is a contagion going hot, and seems Japan has done gone full blown collapse, even if their markets are in denail haha..


Lewshine's picture

Hobo, you are hilarious! "Somebody???". Well, SOMEBODY is going to close the indexes GREEN. Only an audience of IDIOTS could the Fed do this shit.

Dr. Engali's picture

I like the people on teevee. They always make the pain go away. I'm feeling kind of numb right now.

BandGap's picture

I like bond spreads, almost as much as cheese spreads.

slaughterer's picture

Once Europe closes, Kev' will pound VIX to get ES green.

pragmatic hobo's picture

i think everyone and his dog expects that ... but the market is due for a correction of some sort.

monopoly's picture

"teevee" lolol. That is great. 

Kaiser Sousa's picture

shush up...
Bob PissOnME is explaining it all on CNBS right now...

monopoly's picture

This is all so absurd. We should be down 500 points on the Dow not 100. Illusion of all is fixed. Man, this will get ugly. Just the timing.

flyingpigg's picture

The DAx is already looking ugly...

It's about time to price in the Ukrainian issue. Germany exports a lot to Russia.

NOTaREALmerican's picture

Re:  We should be down 500 points

Just wondering why you think that?    Historically,  bad news is always good for the stock market because it means things will get better not worse.   Good news is bad for stocks because things will get worse.

NOTaREALmerican's picture

If these guys would just call The Fed and ask them what to do Europe could be as wealthy and prosperious as the USA.   But those socialists never learn that free-markets and capitalism are the correct way to go.

AccreditedEYE's picture

I'm sure you have your Sarc button on, but it bears repeating to all newbies out there that sadly, capitalism isn't being practiced anywhere these days.

NOTaREALmerican's picture

Re:  capitalism isn't being practiced anywhere these days.

No, that's true.   It was only practiced by English Capitalism Monks for 28 months in the 19th century.   When they acquired all the wealth of the Shire - and were declared Supreme Winners of Capitalism - they realized the game was over but didn't know what to do next.  So, they looked in the Capitalist Bible and realized Ayn left out the "Restart" chapter with the instructions on what to do with all the worthless losers who, for some reason, refused to leave the Shire.    We've been stuck waiting for the Righteous Sword of Libertarian Justice to clean the losers from the Shire ever since.  

Oldwood's picture

Why is it that you can't seem to find your little collectivist socialist paradise? It must be stressful to live in a world as threatening as one that allows competition. Just keep pounding away at your little social justice drum and maybe someday, some benevolent dictator will step in and make your dreams come true.

NOTaREALmerican's picture

All the ISM's are fantasies.   What's so hard to figure-out about this?.   Capitalism fails for the SAME reason Socialism fails,  the assholes and sociopaths eat the dumbasses alive.    Is there something YOU can't comprehend about the assholes and sociopaths winning AND there being NO end-game RULES to restart?

Oldwood's picture

And your solution is?

Its unfortunate that you see those wining as assholes and sociopaths. Some are but many are not, but there is little doubt that those who try to advance, to win, will expend specific effort to do so, and if that constitutes a threat to you, an affront of some type, you are doomed. The world needs winners. Without it we would still be living in caves. But those who despise America would naturally defer to such a life, much as the Taliban. Utopia is everyone living in a cave with an AK47.

Anusocracy's picture

The winners under governmentalism ARE assholes and sociopaths.

Oldwood's picture

Absolutely because they use the false constraints of legality to subvert what is supposed to be a free market. If on the other hand we simply abandoned the rule of law, there would be no such illusion. It would be simply a free for all, survival of the fittest. I think some would have a problem with that. Ultimately the only real protection we can have is as much smarts and knowledge as possible. Anything else is to rely on others, which  is NEVER secure. Instead, we are dumbing down society, creating dependency on the power of others, and fear of anyone who is smarter or works harder than most. It is comical that the attributes we seek in a leader is someone with no experience and naive.

Fear those the most who come to save you. Is that too cynical?

Anusocracy's picture

Which is why I support Anarcho-capitalism.

Everything government touches turns to crap. - Ringo Starr

Oldwood's picture

Thats because all the government does is eat...and shit.

Jano's picture

I see free market to some dgeree in Russia.

NOTaREALmerican's picture

All "markets" are free until some smart-n-savvy person figures out how to manipulate it for their own benefit.  

Oldwood's picture

So lets just kill all of the smart-n-savy? Or just re-education camps as a first step?

What is it that you don't understand about "free"? Freedom is made up of winners and losers.

ohaitieaqui's picture

DJ new record at closing, everything is bullish !!

ohaitieaqui's picture

DJ new record at closing, everything is bullish !!

JustObserving's picture

The European Kevin Henry is on his summer vacation?

Temporalist's picture

Draghi!!!!!! <shakes fist>

buzzsaw99's picture

to the FEZmobile?

youngman's picture

Could be an interesting 30 year bond auction today?????

But I think this is all the World Cups fault....everyone is at the games...

orangegeek's picture

So now who wants to buy some USD???


The Euro is going to take a beating very soon.


And down voting this comment won't change that.

Jack Sheet's picture

I disagree and gave you an upvote to prove it.

Jack Sheet's picture

Not even a blip on the 3 year Dax chart. The Japanese Central Bank will keep buying.

Oldwood's picture

I don't know why I let this shit bother me but these headlines drive me nuts;

Claiming that economic confidence is drive M&A.

I look at charts that show me that this occurs every time the economy is about to go bust, so that means its good, right. And then I wonder what it means when large corporations with big cash think it makes more sense to buy up their competition, or at the very least buy markets rather than competing, and it tells me they see a static or shrinking market where there is no growth, only domination.

Herdee's picture

Buy Greek and Spanish Bonds now!!! (and I have a bridge for sale)

junction's picture

If the markets can only hold on until August, things will stabilize.  Everybody who is anybody goes on vacation for the month of August, including the guys who rig the stock and bond markets.

walküre's picture

Austria Alpe Hypo Real Banco Santander Espirito Santi Di Medici Douche Bancarotta Vaticano Sal Oppenheim Piedro Morgana Totale Destruzioni Capitale FIAT.

jubber's picture

Dow rises 115 points LOL

sbenard's picture

Socialism SUCKS!

Bernoulli's picture

Just watched Santelli commenting on investors losing faith in Central Banks (in the background you saw a foot with an ugly brown shoe... somebody was really relaxed there... lol).

Santelli is the only guy I like on CNBC.


MaxThrust's picture

I am going long Popcorn