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Beta Surge On Hail Mary Hope SNB Will Rescue Euro... For A Few Hours

Tyler Durden's picture




 

Presented with little comment as chatter about the EURCHF peg being adjusted spurred some stick-save buying in EUR as it approached the critical 1.3200 level, ES (and most of high beta risk) has spiked up as US equity's day session opened. ES is 18pts off pre-market lows - well ahead of broad risk assets though. Silver and Oil spiked considerably and Gold is shifting higher as the USD leaks off a little. Volume is not that low in ES for now but we would expect it to fade after this opening excitement as Financials are leading the way +1.3% - notably outperforming their credit spreads.

While correlations are still lower than average among the broad basket of risk assets, CONTEXT is pulling higher but with less exuberance than ES for now. 10Y and 2s10s30s are the main drivers of the strength for now followed by AUDJPY's relatively large shift.

In Europe, credit and equity rallied off the lows of early but did not converge considerably. Notably Main and XOver (investment grade and high yield credit) are now rolling back wider - suggesting risk-on is slowing for now - and financials underperformed considerably on the way up.

Chart: Bloomberg

 

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Fri, 11/25/2011 - 10:48 | 1912758 knight99
knight99's picture

1 HOUR MAX BS RALLY.

Fri, 11/25/2011 - 10:59 | 1912790 GetZeeGold
GetZeeGold's picture

 

 

Hours?

 

Just need a couple of minutes.......then I'm out baby!!!!!!

 

 

Fri, 11/25/2011 - 11:31 | 1912884 CPL
CPL's picture

Might want to get out right now at 10:29. 

 

The trade bots are starting to notice nobody cares anymore.  Can't find any suckers except each other to steal from.  Junior programmers and outsourcing, god bless predictable code.

 

And there is the the tilt...and over the rails it goes.

Fri, 11/25/2011 - 11:51 | 1912942 SheepDog-One
SheepDog-One's picture

Yea what good do the Hopium pops do when no one is falling for the BS anymore? I'd be FLOORED if I saw proof that 10 actual retail buyers bought into this am mini pump.

Fri, 11/25/2011 - 12:05 | 1912991 CPL
CPL's picture

It's actually worse.  With the bots trading the entire market is now prone to the same decay cycle as an uber leveraged ETF.

 

TPTB lose a nickle here and there, times the amount of stocks on the market, every nano-second trade.

 

It's been bleeding badly for around four months.  And like a leveraged ETF in a leveraged decay swing back.  The snow ball only travels down hill gathering size, momentum and weight.  The conservative estimate europe barfed out in it's conference earlier, by accident, was 30 trillion.

 

The actual number is close to 2 quadtrillion dollars.  To cease the steam roller you have to cover every derivative that has any link back to the investment and banking sector.  Not some.

 

All of them must be hedged.  At last glance world derivatives are 1.9 Quadrillion dollars worldwide.  That is how demented it's got.  The number is so high, doesn't matter what they do, infinity with compound interest is where it's going.  That's not capital either. 

 

That's pure debt.  What's owed.

Fri, 11/25/2011 - 12:24 | 1913058 The Fonz
The Fonz's picture

Some thoughts, just ideas.

Why couldn't they just support some of the derivatives? Take out two banks with largely opposing sided bets on derivatives, net them, support the difference with bail out funds. They need to unwind banks but can't deal with everything as you say.  Feed the remainder of the banks to the big boys.

 Why do bonds fate and banks fate have to be tied in an egalitarian fashion? Some banks will be destroyed and some bonds ruined in a fashion that will allow the amount of capitol govts do have access to to keep the disolution orderly. To me that sounds like you have to take out matching opposed bets to flush them. That couldn't possibly be done publicly I don't think. This choice of actions gets them a shot at compliance from the periphery, restores confidence by the show of failing banks, and poor debtors, in an orderly fashion. 

Further the debt doesn't have to be delt with, it only has to function until the next political cycle, and provide enough of a market move to allow the big boys to get in, out, and make money between in order to pump things for a time. That Quadrillion in debt is rolled over a very long time frame, only a very small portion of that amount is required to save the power that be long enough to leverage opposition leadership out of countries that are not "behaving"

Fri, 11/25/2011 - 13:54 | 1913287 CPL
CPL's picture

It should have done that but the government bailed them out.  The derivatives market doubled in size from that single action.  All those banks should have collapsed and taken their dirty laundry with them.

 

So marrying bad banks or debt doesn't take care of the problem.  Just pushes it in a corner into a tiny room overpopulated by bankers and their tools.  Someone eventually forgets themselves, grabs all that bad debt repackages it and it all blows up again.

 

This is less an issue with banking and money, it's closer to waste disposal but all garbage pickup has been suspended indefinitely.

 

As far as confidence goes...fuck'em; trust...confidence...understanding.  Those things are earned over time.  There is nothing in the snake pit to give any indication that trust should be placed with any of them.  This game is over, this is the death of the central bank and this is the outcome of relying on it.  This isn't new either.  Marx, Engels, Keynes...all point to this as when it ends.

 

What the original architects of the design of the central bank didn't count on was 7 billion people, under writing debt with more debt, then when that doesn't work formulate CDS/CDO/ETF/ETN packages to create a large ungainly derivatives market growing by trillions per day with a window rate of 1%.  The whole point of the central bank was to scale the economy with the population, we've been doing it backwards for 60 years.  Even then all models...even the Keynesian model doesn't account for the billionaires or finite energy.

 

In all situations the central bank is made to keep things "equal", a central bank is a communist mechanism, always has been, it is to insure capital growth is heavily regulated.  But that doesn't matter now.  The markets, all of them are so bad now when someone says they got a great deal on a trade, my instant reaction now is "no you didn't."

 

Five years ago...I would have listened.  Today, everyone is a pump and dump artist.  The fed, news letter thieves, banks, brokers, insurance companies, national publications...all of them are on the take.  Or I should actually say, stuck in a position they can't liquidate.  Ever.

 

Would you trust these fools to orchestrate a cat fight?  They can't even trim a budget.

Fri, 11/25/2011 - 17:01 | 1913890 The Fonz
The Fonz's picture

Thank you for your thoughtful reply! I read you often as your opinions are well reasoned, and well argued. Even in disagreeing I learn something of value! My thanks!

Also, no I would not trust these fools to orchestrate anything, that is why a "solution" relies upon a oligarchy gaining power and the overthrow of Greece and Italys govts is so noteworthy. A large group of idiots might not be able to call the tune, but a smaller group might be able to?

Confidence: yes I think confidence can be rewon for a time if a number of banks are destroyed.  I am always stunned at the gullibility of people to believe again and again. It's shocking honestly.

The point that central banks were made to orchistrate the economy with population growth is a concept I had not be introduced before! Thank you! I expect it to be useful!

If you are still willing, if you could explain or reference to a bit more of an explanation on Keynsians not dealing with billionairs? (understood finite energy)

Thank you again! :)

 

Fri, 11/25/2011 - 11:52 | 1912946 CPL
CPL's picture

RSI is as week as a newborn kitten after them blowing their load at open.

 

I often wonder how much money they throw down the market hole just to hedge inflation with their printing factories going 24/7...

 

Anycase...fuck'em.  Anyone that bought in there gets what they deserve, a big bag of nothing.

Fri, 11/25/2011 - 11:03 | 1912799 Popo
Popo's picture

Then again... if the Fed were to step in and move the needle,  today would be the day.   Traditionally the Friday after Thanksgiving is a low vol day,  so it's an easy day for the Fed to buy the market.

We're still going down to the gates of hell... but our central planners may well go for the low-hanging fruit and give us a ramp job in this easy/low volume setting...  

No worries for shorts.  Just borrow more shares and wait for Europe to shit the bed.

 

 

Fri, 11/25/2011 - 11:21 | 1912854 Quintus
Quintus's picture

I think it is clear that the not-so invisible hand just stepped in there and 'Fixed' a situation that was getting out of hand.

Dollar down, stocks up on no news of any significance unless we are seriously to believe that tiny Switzerland is going to prop up the Euro when the German Goliath is unable to.

The fact that salvation only arrived shortly after the US markets opened gives us a clue as to where the owner of the not-very-invisible hand resides.

Fri, 11/25/2011 - 11:54 | 1912953 CPL
CPL's picture

German Goliath?   Seriously...you are going to pull out that old yarn of nonsense?

 

There are third world countries with better balance sheets.

Fri, 11/25/2011 - 12:35 | 1913083 Quintus
Quintus's picture

Third world countries with better balance sheets?  Name one.  Bet you can't.

My point is that by comparison with Switzerland, Germany is a Goliath.  

A wider argument about the relative strength of balance sheets is an exercise in futility if we accept the reality that all developed countries are insolvent and cannot possibly meet their obligations (on and off balance sheet) without the sort of growth levels that would require the discovery of a new infinite energy source together with a means of creating essential commodities out of thin air.

 

Fri, 11/25/2011 - 10:48 | 1912759 holdbuysell
holdbuysell's picture

Gotta love focusing on those fundamentals.

Ridiculous.

Fri, 11/25/2011 - 11:23 | 1912859 CPL
CPL's picture

By fundamentals you mean unending bullshit with a sprinkling of "happy happy!" and a dash of crazy.

Fri, 11/25/2011 - 10:49 | 1912764 transaccountin
transaccountin's picture

i love the smell of hopium in the morning

Fri, 11/25/2011 - 10:50 | 1912765 Tsar Pointless
Tsar Pointless's picture

Price stability.

Fri, 11/25/2011 - 10:53 | 1912769 slaughterer
slaughterer's picture

If S&P cracks 1173 this rally will continue up to 1180 at least.   1173 makes me a believer this is more than this CHF peg chatter.  Big wheels are turning behind the scenes.  Maybe we learn what it really is over the weekend.  

Fri, 11/25/2011 - 10:53 | 1912775 BlueStreet
BlueStreet's picture

Must have drank too much eggnog yesterday, having trouble finding the 'press the shorts' button.  Oh, there it is.

 

 

Fri, 11/25/2011 - 10:54 | 1912779 qussl3
qussl3's picture

Logic says this is BS.

But all short squeezes are started on BS like this.

Wont be surprised if we run up to 1.38ish from here till the EOY.

Can they keep the "No crash Dec" tradition alive?

Fri, 11/25/2011 - 10:57 | 1912786 dpr10
dpr10's picture

1.38???how did you come up with that..I guess that is where you bought long-tern right::))

Fri, 11/25/2011 - 11:08 | 1912814 qussl3
qussl3's picture

Looks range bound to me, if i had to have a position i'd be long the EUR here.

Wouldnt touch anything EUR related now with a ten foot pole tho.

Thing moves like a ping pong, unless you believe you can outrun the brokers i wouldnt play.

Too thin, positioning likely VERY lopsided.

 

Fri, 11/25/2011 - 11:16 | 1912837 GMadScientist
GMadScientist's picture

The ping-pong takes on a different hue when you're long EUO from the mid-16s though.

Manipulated? Yes. Permanently? LOL The word for today is: inevitability.

Fri, 11/25/2011 - 11:22 | 1912855 qussl3
qussl3's picture

LT, absolutely the fundamentals win.

But the leverage most idiots are sold on in FX  and the get rich quick mentality will get retail killed in the ST.

The volatility in the ST is accelerating, the rebounds and pull backs are going to be even more mental going forward.

Fri, 11/25/2011 - 11:56 | 1912964 ceilidh_trail
ceilidh_trail's picture

I agree. Just covered all my equity shorts. My brain says where this is all headed, but, short/medium term it's tough to fight the fed. This is a complete bs rally. But, I want to enjoy my weekend with my family... 

Fri, 11/25/2011 - 12:10 | 1913013 GMadScientist
GMadScientist's picture

Chickenshit! ;)

Fri, 11/25/2011 - 12:09 | 1913006 GMadScientist
GMadScientist's picture

Time to put the tray tables in upright and locked position, no doubt, but parachutes bring more peace of mind than seatbelts.

Fri, 11/25/2011 - 10:55 | 1912781 orca
orca's picture

What SNB does is buying USD and swapping EUR to the FED.
The only entity not terrified of the EUR is the FED, since they know they can outprint anyone anytime anyplace.

Fri, 11/25/2011 - 11:07 | 1912813 swissaustrian
swissaustrian's picture

Yep. It´s so obvious. SNB is buying USDs without a doubt. The Swiss stock market loves it. The real estate market is booming due to ZIRP4EVA... and in a few years we´ll have massive price inflation followed by a collapse of the real estate bubble. Just like what we had in the early 1980s after we had to pay for the late 1970s when the SNB pegged the CHF to the DM. 

Fri, 11/25/2011 - 10:58 | 1912789 Rainman
Rainman's picture

OT....Weil wonders if the Squid is the next MFG with the same ponzi auditors reviewing their books

http://www.bloomberg.com/news/2011-11-25/mf-s-lost-cash-makes-you-wonder-about-goldman-commentary-by-jonathan-weil.html

Fri, 11/25/2011 - 11:13 | 1912794 SwingForce
SwingForce's picture

PPT's got those vacuum tubes repaired I see....

There ya go, erased Friday's last 5 minutes, and a gap jump as a salute.

Fri, 11/25/2011 - 11:00 | 1912796 YesWeKahn
YesWeKahn's picture

Someone must have a predefined list of rumors. They send one out everytime there is a market weakness.

Fri, 11/25/2011 - 11:03 | 1912801 Zgangsta
Zgangsta's picture

None of this concerns me, because I have a diversified portfolio. I own gold and silver!

Fri, 11/25/2011 - 11:06 | 1912803 slaughterer
slaughterer's picture

 

Swiss keeping it mum for now, unlike their US account numbers: "SNB declines to comment on recent CHF weakness and speculation on plans to make an announcement"  Well played, should force some EUR covering.    Squid EUR/USD shorts should be taken out .  (Don't pretend you do not think they went short at 1.34). 

 

Fri, 11/25/2011 - 11:07 | 1912812 papaswamp
papaswamp's picture

Got to have the rally early....the key will be the last 30 minutes of the market day....will traders want to go into the weekend exposed?

Fri, 11/25/2011 - 11:11 | 1912822 qussl3
qussl3's picture

The relevant questions are whether they are net long or short and how much?

Specs are likely to be short not long.

Fri, 11/25/2011 - 11:08 | 1912815 No Mas
No Mas's picture

SNB, blah blah blah.  Credit spreads blah, blah blah.  EURCHF blah blah blah.

Just BTFD.  TPTB are TPTB for a reason, mainly they have the POWER!

The power to keep markets, currencies or whatever else where they want them to be.  Otherwise, they would not be TPTB!

So relax and BTFD.

Fri, 11/25/2011 - 11:12 | 1912824 SheepDog-One
SheepDog-One's picture

Why do you always want other people to buy? You sellin?

Fri, 11/25/2011 - 11:15 | 1912832 Mike2756
Mike2756's picture

BOJ might prove otherwise.

Fri, 11/25/2011 - 11:18 | 1912842 GMadScientist
GMadScientist's picture

In your case, BTFD means bend to face downward.

 

Fri, 11/25/2011 - 11:09 | 1912817 dcb
dcb's picture

Ok if you use b9ollenger bands like I do you realize the last close on weds was well outside of the 95% two week confidence level. so you know it almost always has to move in before moving down. I try to use as a potential trading top two closes out side of this (on an upswing) it doesn't work as well going down, because the down move is so much faster. if today has a very small trading range, be careful. ( could be a trun up, and we are overseold and going into holiday season. plus 10 year near record lows. I don't know what's going to happen but alos in general I close shorts or lessen then down 4-5 days, then re buy lower

Fri, 11/25/2011 - 11:20 | 1912847 GMadScientist
GMadScientist's picture

You sound like someone discussing the finer points of surfing tsunami; your analytical tools are blunt in a manipulated market on those timescales.

Fri, 11/25/2011 - 11:09 | 1912818 slaughterer
slaughterer's picture

Getting close to my BUY stops.  Again, today's opening and this rumor is very well-played technically.  

Fri, 11/25/2011 - 11:10 | 1912819 SheepDog-One
SheepDog-One's picture

Good zero volume morning for a little pump n dump action. Big deal.

Fri, 11/25/2011 - 11:09 | 1912820 YHC-FTSE
YHC-FTSE's picture

I'm sorry, "Risk on is slowing"? When was it ever "on" in the last few months? 

 

Not interested in ES, but the only asset class I'm interested in, gold, is running +ve beta as expected, and I expect it to move to -ve beta if the EU risk and associated financials in the US keep on take a hammering. A +1.3% shift at opening does not mean very much, imo, after a 24 hr break from tanking. Unless you know something I don't, the risk fundamentals have not changed in financials. 

Fri, 11/25/2011 - 11:15 | 1912829 Cult_of_Reason
Cult_of_Reason's picture

Bernanke ordered NY Fed to prop up the stock market today to elevate consumer sentiment so she spends more at the mall.

Fri, 11/25/2011 - 11:22 | 1912857 SwingForce
SwingForce's picture

The only stocks The FED is buying are BANKS.

Fri, 11/25/2011 - 11:14 | 1912831 slaughterer
slaughterer's picture

This is not a low-volume play: there were some BOS in the first ten minutes.  

Fri, 11/25/2011 - 11:55 | 1912840 SheepDog-One
SheepDog-One's picture

GEE theyve popped indexes up about .5%or so wow what a rally! Smokin!

Fri, 11/25/2011 - 11:15 | 1912834 GOSPLAN HERO
GOSPLAN HERO's picture

Ten Reasons for Secession

By J. Michael Hill

A 2009 Zogby poll revealed that about one out of every five Americans believe that States have a right to peaceably secede from the United States and become independent republics. A similar percentage says that they would support a secession movement in their own State.

The greatest support for secession came from the South, where almost 26% of those polled supported a peaceful break with Washington, DC.

What is behind this increasing support for secession and independence? Perhaps the answer is this: hard reality has finally trumped the myth of a sacred, indivisible union. In other words, many citizens are beginning to see the hand writing on the wall, and the message is alarming.

There are at least ten good reasons for Southern secession in early 21st-century America:

1. The U. S. government is an organized criminal enterprise; secession is the only way to return to legitimate government.

2. The U. S. economy is failing; secession makes economic sense.

3. The South’s unique history and culture is worth protecting.

4. The criminal nature of the bank bailouts and the Fed.

5. A dysfunctional national electoral system, secession may be the only way to restore integrity to elections.

6. Third World immigration into the South, secession removes the federal government's interference and lack of performance.

7. Organic community vs. the globalism of the elites.

8. The implementation of an American police/surveillance state.

9. The Christian South v. secular America, secession provides the opportunity to return to Our Founding Principles.

10. Because we think we can rule ourselves better than we are being ruled by DC, secession is a path to American Liberty.

Can you think of some other reasons for secession?

Fri, 11/25/2011 - 11:17 | 1912839 Stack Trace
Stack Trace's picture

Glad I dumped most my shorts Wednesday.Still have EUO in small position. Hoping to get a good setup to reenter Monday,

Fri, 11/25/2011 - 11:57 | 1912844 SheepDog-One
SheepDog-One's picture

LOL, markets are up .05% and everyone is glad they jumped onboard the SuperRally this morning! Man, people are funny.

Fri, 11/25/2011 - 11:21 | 1912852 GMadScientist
GMadScientist's picture

We'll reserve you a seat in the crying room. Knife-catchers often have less than 10 fingers.

Fri, 11/25/2011 - 11:37 | 1912906 Stack Trace
Stack Trace's picture

You misunderstand. I want to short more. Just was afraid of a BS rally like this. No way will I go long in this BS market. I just wait for setups on financials and short them. Mostly buying gold on dips and adding to my hoard.

Fri, 11/25/2011 - 11:19 | 1912846 common_sense
common_sense's picture

bull shit

Fri, 11/25/2011 - 11:33 | 1912848 IrritableBowels
IrritableBowels's picture

Really hard to have any faith in the decency of my 'fellow' Americans:RAGE

Fri, 11/25/2011 - 11:21 | 1912849 sabra1
sabra1's picture

remember folks, US markets close at 1.00!

Fri, 11/25/2011 - 11:25 | 1912865 SheepDog-One
SheepDog-One's picture

Dead market day, half day at that, most people arent even aware markets are open and still laying around drunken, or out acting like lunatics buying cheap Chinese crap. 

Fri, 11/25/2011 - 11:21 | 1912850 slaughterer
slaughterer's picture

They got me: my shorts have been stopped out.  Very good, whoever is running this.   Time to fire up the popcorn.  

Fri, 11/25/2011 - 11:21 | 1912851 rambler6421
rambler6421's picture

Plunge Protection Team in Action on Black Friday.

 

libertarian86.blogspot.com

Fri, 11/25/2011 - 11:23 | 1912853 SheepDog-One
SheepDog-One's picture

Funny how the 1,000 point DOW drop just in the last couple weeks suddenly didnt happen at all...no Uber Bulls were hurt certainly... and all events now irrelevant as everyone proclaims 'Im all in long here'...now that the DOW popped a little boner on a dead market day.

Fri, 11/25/2011 - 11:26 | 1912866 qussl3
qussl3's picture

Ofc this is BS.

But if i were manipulating prices, today is precisely the day i would make a move.

Thin volumes, likely lopsided retail positionin, abyssmal newsflow, going into the holiday season.

It's just begging for the sharks to come in.

Fri, 11/25/2011 - 11:23 | 1912860 ImNotExposed
ImNotExposed's picture

"It is impossible to exaggerate the immensely stabilizing effects upon the world that a great free trade region in Europe would create."

- Thomas Lamont

http://www.ibiblio.org/pha/policy/1939/1939-11-15a.html

Fri, 11/25/2011 - 11:25 | 1912863 Eireann go Brach
Eireann go Brach's picture

This rally will last less than an hour, thankfully, as I am off to the mall to videotape and watch all the Food Stamp animals and lots of 300 pound black women stampede over each other and squash all the grannies in their way. I will then be submitting this video to the discovery channel so they can do an episode on "Are they humans or animals that shop on Black Friday"?

Fri, 11/25/2011 - 11:28 | 1912871 CPL
CPL's picture

The answer is vegetable.

Fri, 11/25/2011 - 11:39 | 1912912 slaughterer
slaughterer's picture

Do not think so.  This is a well-played set up and we are in the second miserable hour of it.   1172 breaks and shorts will start getting stopped.  

Fri, 11/25/2011 - 11:46 | 1912926 SheepDog-One
SheepDog-One's picture

LOL sure....another 'short squeeze rally'...uh huh.

Fri, 11/25/2011 - 11:27 | 1912869 CPL
CPL's picture

Why would the Swiss National Bank bail out the euro?  They just liquidated their siilver and gold positions a month ago.  Are they planning on bailing them out with a shit tonne of debt on the Swiss taxpayer now.

 

last i looked most of the businesses and people in Switzerland were getting chocked to death on taxes already.  Like asking a Belgian if they are taxed enough.

 

This isn't going to end well for the HFT's or the Algo traders.

Fri, 11/25/2011 - 11:30 | 1912881 SheepDog-One
SheepDog-One's picture

All theyre doing is trading price tags at the used car lot, no one is buying.

Fri, 11/25/2011 - 11:27 | 1912870 Everybodys All ...
Everybodys All American's picture

Any rally and I mean any rally is a selling opportunity. Good luck trading.

Fri, 11/25/2011 - 11:28 | 1912874 MFL8240
MFL8240's picture

A complete charde. 

Fri, 11/25/2011 - 11:30 | 1912882 Father Lucifer
Father Lucifer's picture

There are no people working on WS today and the algos only know UP, machines are still stupid.

Fri, 11/25/2011 - 11:32 | 1912890 SheepDog-One
SheepDog-One's picture

Got to pump in order to dump. I wouldnt be surprised to see a round trip half day, ending back at lows. But if not today, then some day soon.

Fri, 11/25/2011 - 11:31 | 1912885 LookingWithAmazement
LookingWithAmazement's picture

The auctions of Belgium and Italy were a success today. Bye bye "crisis".

Fri, 11/25/2011 - 11:33 | 1912892 slaughterer
slaughterer's picture

ZH did not post it, but German and UK GDP came in in-line yesterday, and German business confidence beat.

Fri, 11/25/2011 - 11:48 | 1912932 Everybodys All ...
Everybodys All American's picture


German 3Q Adjusted GDP Unchanged From First Estimate

FRANKFURT -- German economic growth accelerated in the third quarter of the year in line with expectations, final data from the country's Federal Statistics Office confirmed Thursday.

German output rose 0.5% in the third quarter compared with the second quarter, according to price- and calendar-adjusted figures, data from Destatis showed. On a yearly basis, gross domestic product grew 2.6%.

Economists pointed to strong investment and private consumption data, detailed in the final GDP report, as a sign that Germany's economy was robust in the third quarter. Private consumption, sometimes a soft spot in Germany's export- driven economy, was up 0.8% on a quarterly basis.

But signs of a slowdown, if not an outright recession, loom for the quarters ahead, economists said.

"Today's numbers should not mark the end of an almost golden period for the German economy," writes Carsten Brzeski, an economist with ING. "The economy should re-emerge after a soft patch."

The data confirm preliminary growth estimates published by Destatis earlier this month, and are in line with the expectations of analysts surveyed by Dow Jones Newswires.

Second-quarter GDP data were also slightly revised to growth of 0.3% on a quarterly basis and 3% annually, Destatis said.

UK GDP grew 0.5 per cent in Q3

The Office for National Statistics (ONS) has confirmed that UK gross domestic product (GDP) grew by 0.5 per cent in the third quarter of 2011.

The latest economic growth figure remained unchanged from the estimate published by the ONS at the start of the month.

Vicky Redwood, chief UK economist at Capital Economics, attributed the UK’s growth to government spending and companies building up inventories in response to the slowdown in demand during the period.

‘I don’t think either of those are reasons to get optimistic about the increasing GDP in the third quarter,’ she commented.

Production industry output was revised down 0.1 percentage points from the previous estimate but was up by 0.4 per cent in the third quarter of the year.

Growth in the volume of output in the service industries was also revised down 0.1 points by the ONS, meaning it increased by 0.6 per cent in the period.

However, construction output growth went up 0.4 percentage points in the latest estimate, although it remained down 0.2 per cent in the quarter.
    
Redwood told WhatInvestment.co.uk that UK GDP growth could be expected to stagnate or even contract in the next quarter.

‘The economy’s growth prospects are looking quite weak so in terms of returns on investments it’s not looking very promising,’ she added.

The Bank of England has forecast economic growth to be in the region of between 0.7 per cent and 0.8 per cent next year.

How can you overlook such robust growth ... carry on.

Fri, 11/25/2011 - 11:34 | 1912893 chaartist
chaartist's picture

if they adjust the peg, then Hungary can go down pretty fast because of their exposure to CHF loans.

Fri, 11/25/2011 - 11:36 | 1912900 Reptil
Reptil's picture

Rally over? lol

Fri, 11/25/2011 - 11:36 | 1912901 slaughterer
slaughterer's picture

If they can ram S&P through 1182, they can take out the late shorts who shorted on Monday and Tuesday.  I am sure that is a significant number.   Again, bravo, very well played.   

Fri, 11/25/2011 - 11:39 | 1912911 SheepDog-One
SheepDog-One's picture

LOL, yea right.

Fri, 11/25/2011 - 11:37 | 1912904 mktsrmanipulated
mktsrmanipulated's picture

for the guy talking about this rally R U KIDDING ME! we have had 6 day selloff there is bound to be a relief rally one day or some part of the day....my 1 MAIN QUESTION TO YOU IS WHAT HAS FUNDAMENTALLY CHANGED? ANSWER NOTHING...THE PUPPETS HAVE NO IDEA HOW TO FIX THE PROBLEM BECAUSE THEY CAN'T....

Fri, 11/25/2011 - 11:46 | 1912928 slaughterer
slaughterer's picture

What has fundamentally changed?  

1.)  There has been a significant regime change in two of the most problematic EU countries, which are now led by GS cronies.

2.)  There is the potential for surreptitious ECB/Fed buying of EU sov debt.  (Made clear today)

3.) There is a load of short ES/EUR stops to run through

4.)  There is a do-not-want-to-miss-the-Santa-rally fear from beta-starved underperforming PMs who are approaching EOQ 4/EOY.   

5.)  Some of the broader eco data has come in consensus or better-than-consensus lately.

6.)  We are technically oversold.  

Call it the do-not-give-a-shit-about-credit rally and junk me all you want, but I am sure Robotrader will be showing up in 3, 2, 1... bragging about timing this reversal with his 'cult" retail stocks.  

Fri, 11/25/2011 - 12:01 | 1912978 SheepDog-One
SheepDog-One's picture

OH well you left out 1 little thing, the startup of WW3 go price in thermo nuclear exchanges.

Fri, 11/25/2011 - 12:16 | 1913033 dereksatkinson
dereksatkinson's picture

Sentiment is really negative and short interest is pretty high.  So yes, there is potential for a short squeeze once again.  However, it's not going to happen based on rumors.  Real changes and news needs to give people a reason to cover.

Fri, 11/25/2011 - 12:40 | 1913094 slaughterer
slaughterer's picture

7.) 13 Dec FOMC meeting announcement ==>> QE3

Fri, 11/25/2011 - 11:38 | 1912907 Bansters-in-my-...
Bansters-in-my- feces's picture

The sheeple keep on breeding I see.

Fri, 11/25/2011 - 11:38 | 1912910 max2205
max2205's picture

Another os bounce. 10% or 20% this time ?

Fri, 11/25/2011 - 11:42 | 1912917 Mike2756
Mike2756's picture

Gold/silver ratio pointing towards 60, 1300/20ish?

Fri, 11/25/2011 - 11:49 | 1912934 michaelsmith_9
michaelsmith_9's picture

The Euro will continue to fall apart in the weeks ahead.  It is way over-valued and needs a severe re-pricing.  The technicals are pointed to a move to much lower levels.  -- A short term retracement seems to be underway for the SPX and DX as they continue to move inversely to each other.  The DX continues to remain in a very bullish formation.  The chart technicals are available here.  http://bit.ly/v5PdJS

Fri, 11/25/2011 - 12:02 | 1912981 Randall Cabot
Randall Cabot's picture

I think the manipulaters are going to kick the can through the Christmas season and drive stocks higher which will get the the clueless to spend but I am keeping a finger on the SELL button.

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