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EUR Strength Sparks DAX Rout To 7-Week Lows
It appears Draghi's gonna need a bigger bazooka... The last 2 days have seen the biggest drop in 5 months for the German stock market. DAX is now back at 7-week lows as EUR strengthens above 1.11 (up a stunning 6 handles since Draghi said it was "pointless" to short EUR) as the YoY rise in European lending has prompted fears of an early taper (and The Fed looks set to be on hold for longer) and fast money has moved on to China amid Grexit fears. Peripheral bond spreads are weak again - especially Portugal.
German stocks battered...
As EUR strengthens amid no more promises from Draghi (as The Fed looks to be on hold for longer)...
From April 11th -
Expressing confidence in the euro’s continued stability, Mr Draghi said on Saturday it was “pointless” to go short on the single currency — challenging anyone who disagreed to do it.
So far no good. And as a gentle reminder... the biggest consensus trade in the world is... the Euro short. So yes, "max pain" is coming fast...
Charts: Bloomberg
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Time for the fed to come out and save the day. I'm sure the GDP and FOMC lining up today is just a coincidence.
seven week lows what is that like point three percent off the ath?
Looks like about 7.2% if I did the math right.
close enough. wake me when it gets to -72%.
Alarm has been set.
More importantly than the Dax I'm betting Mayweather to knock Manny out in one of the final 5 rounds.
Yes, Mayweather is one cocky twat, but nobody can deny he's a supreme athelete. Manny looks too old to me, plus he missed a day's training last week. That's not a good sign.
I have my money on Manny. Freddie is also very good at what he does.
Also backing the draw at 16-1.
don't put it past them to fix the judges. Lot's more cash to be made on a re-match.
It must have rained in Europe so that the Euro Dirty Shirt is no longer as dirty when compared to the US Dollar Dirty Shirt.
For some reason, the speculators don't seem to be quite as afraid of a Grexit. I am guessing that they think the Fed will not act soon to raise rates. Otherwise, the Grexit and negative interest rates and slow economy and the ECB mini-QE in the EU should not be giving the Euro any strength at all.
Sounds like it is time for Draghi to find his own EU version of the FED's Citadel so that he can "stabilize" the german stock market... Equities seem to be the current favorite tool of central planners for an inflation (aka debt increase) transmission mechanism. I would think it is a given that at some point all global equities will become as "zombied"... Sorry.... "managed" as the US markets are now.
and Deutsche Bank wants to downsize....
in a case of selfdefeating 'TBTF too big to fail' self-censorship......
"As part of the efforts to increase profitability, Deutsche Bank will cut back its investment banking operations, and invest more in transaction banking as well as its own retail businesses. The bank will slash 200 billion euros ($217.5 billion) in investment bank assets and reduce the number of countries in which it operates."
http://www.dw.de/deutsche-bank-announces-major-downsizing/a-18410088
WTF ?
https://www.youtube.com/watch?v=lrwAANYANhs
Just for Mario...