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'All-Clear' As Europe Recovers Post-NFP Losses

Tyler Durden's picture


All it took was a Frenchman losing his nerve, some chatter on QE, and a few more weak US and EU data points, and hope for better Chinese GDP, and sure enough - free-money-flow is back on the table and risk assets are responding. European equity and credit markets have all but totally recovered to their Thursday closing (pre-NFP-plunge) levels. European sovereigns are mixed with Portugal 27bps wider than pre-NFP, Spain unch, and Italy -11bps but EURUSD is higher on the day and now back above last Thursday's highs as we note Europe's VIX dropped in sync with US VIX today - still maintaining relatively elevated levels historically relative to the US.

European equity (blue) and credit has recovered almost all the losses from NFP...

while sovereigns are much more mixed...

but financials remain underperformers and LTRO Stigma has hardly budged...

EURUSD is rallying nicely as the all-clear has been given - now back to above last Thursday's highs.

And European VIX has dropped but remains elevated relative to the US (even as risk assets have recovered more of the losses in Europe than the US)...

Charts: Bloomberg


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Thu, 04/12/2012 - 11:44 | Link to Comment ekm
ekm's picture

Extreme despair to maintain the dollar value of holdings.

Does anybody remember MF Global? They kept buying italian bonds to keep the price up until JPM called the margin.

Thu, 04/12/2012 - 11:49 | Link to Comment GetZeeGold
GetZeeGold's picture



All-Clear......yeah.....I'm not falling for that for the 1000th time.


Thu, 04/12/2012 - 12:09 | Link to Comment HarryM
HarryM's picture

I just realized that "Doing the same thing over and over and expecting different results" works both ways

Thu, 04/12/2012 - 12:22 | Link to Comment ekm
ekm's picture

Correct. For the ones who get sucked in, it's true, it works both ways.

Thu, 04/12/2012 - 14:18 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

L0L!  there's that timing thing, again?

and in the long run...

Thu, 04/12/2012 - 12:38 | Link to Comment SheepDog-One
SheepDog-One's picture

'ALL CLEAR' for this morning....but we have no idea how we keep it together this afternoon!

We're about at that point now.

Thu, 04/12/2012 - 11:47 | Link to Comment Waffen
Waffen's picture

so is it:


QE to infinity


infinity to QE?



Thu, 04/12/2012 - 11:46 | Link to Comment monopoly
monopoly's picture

I just love these "free markets". Don't you all agree?

Thu, 04/12/2012 - 11:59 | Link to Comment Chump
Chump's picture

Heh.  So long as I'm able to buy gold and silver and have it delivered...

Thu, 04/12/2012 - 11:46 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

JH Christ, are the dip(shit) buyers just lucky?  or smart?  I swear!!!

Thu, 04/12/2012 - 11:47 | Link to Comment 5880
5880's picture

it's the last of the suckers

Thu, 04/12/2012 - 11:48 | Link to Comment ebworthen
ebworthen's picture

Robots decided it was party time.

More FED cotton candy sure to follow, so regardless of earnings or the real economy it's "buy, buy, buy" at Skynet.


Thu, 04/12/2012 - 14:24 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

the dollar is down almost a hay-penny to 79.3. eb

it's hard to imagine anything more fuking bullish...

Thu, 04/12/2012 - 11:51 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

The free money buffet is open again after a VERY temporary closing, zero interest, all you can spend, please clean you plate before going back for seconds and thirds...

Thu, 04/12/2012 - 11:51 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Actually, if you look at the Dow daily..... this is the start of the the right shoulder of a H&S top.  If true, H&S top should be complete about 4/20-25.

We'll see.

Thu, 04/12/2012 - 12:19 | Link to Comment El Viejo
El Viejo's picture

Talk about H&S take a look at Tax Revenues:


Thu, 04/12/2012 - 11:52 | Link to Comment SheepDog-One
SheepDog-One's picture

Well this is just stupid at this point...really no point in even paying attention anymore.

Thu, 04/12/2012 - 11:56 | Link to Comment Snakeeyes
Snakeeyes's picture

Is that why Lagarde is in the USA with her gruel bowl entended like a gray Oliver Twist?

Thu, 04/12/2012 - 11:57 | Link to Comment carbonmutant
carbonmutant's picture

...must have spooked some weak bears

Thu, 04/12/2012 - 11:58 | Link to Comment q99x2
q99x2's picture

Too Soon to Say US Economy Out of Danger: Fed’s Dudley

Right and you ass wipes (the FED) haven't been able to do an f'n thing about it in 4 f'n years because you can't. All you can do is give the taxpayers money to the banks which we are going to throw your asses into jail and give you the death penalty for doing.

Dudley DoRight's Headed to Prison. Fucker.

Thu, 04/12/2012 - 12:08 | Link to Comment HarryM
HarryM's picture

Welcome to the Matrix

Thu, 04/12/2012 - 12:12 | Link to Comment LouisDega
LouisDega's picture

BTFD now redux

Thu, 04/12/2012 - 12:29 | Link to Comment Bold Eagle
Bold Eagle's picture

What else did you expect after Goldman closed its "long" Russell 2000 recommendation?

Thu, 04/12/2012 - 13:09 | Link to Comment bullmkt
bullmkt's picture

From yesterdays doom and gloom on ZH it was evident that rally will occur and yet again my morning longs

are well in profit.All sorts of negativity including some FSB "systemic risk charts" indicated bears getting killed.

Like from about Dec 20:)

Thu, 04/12/2012 - 15:19 | Link to Comment MFL8240
MFL8240's picture

Never thought I would live to see such manipulation ans outright fraud in the US financial sytem.  What a pity!

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