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Draghi Market Response: EUR Down, Gold Down, EU Bond Yields Down, EU Stocks Down, US Stocks Surge

Tyler Durden's picture





 

UPDATE: US equities surge on day-session open (as AAPL hits low of day)

Perception; Independence; Conditionality; Unlimited; Fully-Effective-Backstop. Draghi 'nailed-it' on the drinking game but it seems the world is not amused. The market's reaction to the new OMT is modest EUR weakness (and more JPY weakness), practically no change from US equities (and modest weakness in European equities), Gold and Silver disappointed at the 'conditionality' and not total print-fest; and yet 2Y Italian and Spanish bond yields - which flatlined for a while, are now dropping faster and the longer-dated Italian and Spanish yields are dropping also. US Treasuries are 5-6bps higher in yield. In Summary: "Spanish bonds soaring on hope Spanish bonds will plunge to allow Spanish bonds to soar on ECB purchases" - everything else not impressed.

 

EURUSD rallied on no rate cut and fell on OMT reality...

 

2Y Spain and Italy yields were stable for a while then accelerated lower...

 

but European stocks are leaking lower...

 

Charts: Bloomberg

 


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Thu, 09/06/2012 - 09:37 | Link to Comment tuttisaluti
tuttisaluti's picture

Buy the dips in Pm's

Thu, 09/06/2012 - 09:41 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Wow......it lasted all of 5 minutes this time....and then the boys figured out the BS.

 

Thu, 09/06/2012 - 10:14 | Link to Comment sunaJ
sunaJ's picture

This is the new Long Slog.  Everyone knows the crash is inevitable, but we have to endure these years of interventions as the power structure refuses to submit to its own destruction, to the detriment of greater civilization.  The Long Slog is to be followed by the Epic Depression, subsequently followed by the Great Localization.  The hysterical powerbrokers will be fighting it the whole way, encouraging anyone to embrace the scapegoat of terrorism, illegal aliens, Iranians, homosexuality or the reviled political party of your choice.  Keep your eye on the ball because things will get weird(er).

Thu, 09/06/2012 - 10:25 | Link to Comment zoggl
zoggl's picture

Gold Down? May be for a second - and still very green. Is this worth typing a headline in ZH? I call this Boulevard jornalism.

Thu, 09/06/2012 - 09:38 | Link to Comment Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

False Promises, Bitchez!

Thu, 09/06/2012 - 09:46 | Link to Comment Sudden Debt
Sudden Debt's picture

What does marriage have to do with this article?

Thu, 09/06/2012 - 10:45 | Link to Comment SAT 800
SAT 800's picture

They both involve promises that won't be realized.

Thu, 09/06/2012 - 09:53 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"Paper promises, Bitches!"  - Fixed.

Thu, 09/06/2012 - 09:38 | Link to Comment alien-IQ
alien-IQ's picture

/ES...fuck. Parabolic.

Thu, 09/06/2012 - 09:44 | Link to Comment Parabolic
Parabolic's picture

Someone rang?

Thu, 09/06/2012 - 10:20 | Link to Comment Orly
Orly's picture

Wait 'til they realise that the bounce they created was on hopes of more free money.  Looking at the latest data, (whether true or false, it is the propaganda...) there is no way Dr. Bernanke is going to throw gasoline on this thing.

The bubble has already burst.  Now, the longs are finding more suckers to pull into the maelstrom before the levee breaks.

Needless to say, all of this is unsustainable.  Gravity is a mere matter of time.

:D

Thu, 09/06/2012 - 09:38 | Link to Comment PrintingPress
PrintingPress's picture

I had a sad

Thu, 09/06/2012 - 09:38 | Link to Comment Non Passaran
Non Passaran's picture

I am seeing US markets at 1%+ up (delayed quotes)!

Thu, 09/06/2012 - 09:40 | Link to Comment MFLTucson
MFLTucson's picture

The world of lying leaders!

Thu, 09/06/2012 - 09:45 | Link to Comment Sudden Debt
Sudden Debt's picture

We need a Idiotic Hopium Index!!

THE IHI!!

THE MOST IMPORTANT INDEX EVER!!

Thu, 09/06/2012 - 10:42 | Link to Comment SAT 800
SAT 800's picture

The S&P 500 works pretty good as a stand-in!  Book Him, Dano!, (hawaii 5-0).

Thu, 09/06/2012 - 09:41 | Link to Comment vertexa
vertexa's picture

profit taking?

Thu, 09/06/2012 - 09:41 | Link to Comment scatterbrains
scatterbrains's picture

stocks ar a yawn, gasoline though loves it  up 2%  and rocketing.  Lets hit that brick wall head on bitchezzz!

Thu, 09/06/2012 - 09:43 | Link to Comment Jlmadyson
Jlmadyson's picture

Yea DRAGHI SAVED EUROPE THIS TIME RIGHT?

These people are crazy.

Thu, 09/06/2012 - 09:42 | Link to Comment Life of Illusion
Life of Illusion's picture

 

Draighi designed this when at FSB,,,to take assets under control

DRAGHI SAYS GOVERNMENTS MUST BE READY TO ACTIVATE EFSF, ESM

 

Thu, 09/06/2012 - 09:43 | Link to Comment RiskAverseAlertBlog
RiskAverseAlertBlog's picture

Conditionality? You mean like a treaty agreement limiting sovereigns to budget deficits capped at 3% of GDP? Nothing but a banking dictatorship's dream world of lies.

Thu, 09/06/2012 - 09:44 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Draghi Market Response: EUR Down, Gold Down, EU Bond Yields Down, EU Stocks Down, US Stocks Surge"

As far as the global petro dollar currency reserve is concerned........US Stocks Surge is the only response that counts.

Thu, 09/06/2012 - 10:04 | Link to Comment Spastica Rex
Spastica Rex's picture

USA! USA! USA!

Thu, 09/06/2012 - 09:45 | Link to Comment stika
stika's picture

not really up to date, the order from the ECB to BUY EM ALL was due in the mid of the conf call... the big rally in the Eu stock market started at 1300 GMT sharp. almost 2% in a matter of 30 minutes. 

Thu, 09/06/2012 - 09:46 | Link to Comment stika
stika's picture

the move is called "boosting the confidence". seems it's not really working in the EUR/$ tough.

Thu, 09/06/2012 - 09:47 | Link to Comment Gtinkham
Gtinkham's picture

Dragass market response.

 

Thu, 09/06/2012 - 09:47 | Link to Comment Boilermaker
Boilermaker's picture

STAWKS UP!!!!

Thu, 09/06/2012 - 10:16 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Stahks are on a tear!!!!

Thu, 09/06/2012 - 09:48 | Link to Comment Ancona
Ancona's picture

Umm.....Isn't there an important German supreme court decision that has this shit all hanging in the balance??

Thu, 09/06/2012 - 09:58 | Link to Comment Boilermaker
Boilermaker's picture

I think you mean a statement.  A decision implies that they are actually considering denying it.

Thu, 09/06/2012 - 09:50 | Link to Comment G-R-U-N-T
Thu, 09/06/2012 - 10:41 | Link to Comment SAT 800
SAT 800's picture

When is the breaking point when a great ship has a hole in it? When it's down 12 degrees by the bow? When the stacks disappear under the surface? When it's halfway to the bottom of that cold, cold, sea? There isn't any breaking point; it's a process, and it's well underway.

Thu, 09/06/2012 - 09:52 | Link to Comment Oh regional Indian
Oh regional Indian's picture

The levers in the hands of the controllers are endless. 

The simulation is running perfectly.

No capable human subjects are showing extreme distress.

Gold today, Oil tomorrow, Silver there-after, corn for good measure, did we forget iron ore? What a bore, let's crash the Loonie, spike the Yen and count to ten.

Then drone a kill, or 25,

And show it on the TV, live.

Still the capable people snore.

All is good.

The simulation is running perfectly.

ori

 

Thu, 09/06/2012 - 10:06 | Link to Comment Spastica Rex
Spastica Rex's picture

The simulation is running perfectly.

I DK, seems like we're seeing a lot of glitches in the Matrix of late.

Thu, 09/06/2012 - 10:22 | Link to Comment Oh regional Indian
Oh regional Indian's picture

The simulation has them glitches covered.

Programmed out-liers. Like you and me. ;-)

ori

Thu, 09/06/2012 - 10:28 | Link to Comment disabledvet
disabledvet's picture

There's no glitch. (tapping chalk board) ATTENTION Class of Tylers Durden! (tapping chalk board)....not only is the the Fed financing the American engagement in the ME...but so is now the ECB AND the BOC AND the BOJ AND...

Thu, 09/06/2012 - 09:53 | Link to Comment adr
adr's picture

Bots love keywords. In a market with no human traders, this is what we get. Humans can figure out the keywords are actually meaningless, bots can't.

Draghi sould have started the speech with, "I'm going to say a whole bunch of algo bot market ramp keywords. All my friends at Goldman have positioned themselves for maximum profit from my speech."

I guess Goldman didn't want Obama re-elected with this move putting oil near $100 and gas will shoot over $4 again. Of course the financial media has been saying for the last ten years that a weaker Euro means cheaper oil.

Thu, 09/06/2012 - 10:09 | Link to Comment Spastica Rex
Spastica Rex's picture

Interesting thought.

Gas higher + stocks higher and who's happy?

Not the plebs.

Thu, 09/06/2012 - 09:56 | Link to Comment AynRandFan
AynRandFan's picture

Let's see.  If we invest money today in plants and equipment, we can sell our products tomorrow for money that is worth half as much.  Great!

Thu, 09/06/2012 - 10:07 | Link to Comment Lost Wages
Lost Wages's picture

No matter what, the stocks I sold in May keep going up. Getting ready to kill myself.

Thu, 09/06/2012 - 10:18 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

When you're ready to jump back in please let me know? That will be the sign for me to jump out. :)

Max Payne bitchez. That's what the middle class wealth transfer process is all about.

No one escapes.

Thu, 09/06/2012 - 10:22 | Link to Comment Lost Wages
Lost Wages's picture

I'm not jumping back in until after the next crash, so if the hologram rally continues indefinitely, it could be awhile.

Thu, 09/06/2012 - 10:13 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Printing is Printing. Period.

Just buy some PMs, already, then forget all this shit and get on with real life.

We're not here for a long time...

Thu, 09/06/2012 - 10:13 | Link to Comment Xibalba
Xibalba's picture

HOME RUN with the baffle bat!  Next up - Muppet Sheep get Kim Kardashian posters! 

Thu, 09/06/2012 - 10:13 | Link to Comment SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

TPTB-represennted by the Bernank and NObama:  get everybody on board with this stock market thing going higher. We've got the sheep right where we want them- 4.00/gal gas, skyhigh real goods, they're our slaves for life if they want to go to college or by a house. The stock market gives the sheep the illision that every thing will be ok, all the while we slowly use thier 401k's to invest(sell to them) in this bullshit sky high stock market and buy us a little more time to implement our social fascist plan.

 

Central bank and the rest of the world mouthpeices: Check!

Thu, 09/06/2012 - 10:14 | Link to Comment boiltherich
boiltherich's picture

I cannot understand how the euro is still 1.25, after years of bailouts and economy wrecking, and uncertainty and monstrous debt, by my thumbnail valuation for it should be no more than 60 cents. How can the market afford to keep floating this dog and pony show at over a buck? Why would they even deal in a currency that is doomed sooner or later and could be gone in any given month?

This value is recklessly high and probably the only thing keeping it alive at this point because if it were to be fairly valued at half a buck the inflation in Europe would be so high that the northern core would drop the euro like a stone cold turd. The point has been reached where the aims and needs of the north and south are in diametric opposition, mutually exclusive. No longer a battle of wills but of the pride of a few leaders, all want the euro dead by now but none wants to be blamed for the end of the euro, this is why it was said that Greece should have a six day work week, if they can just get Greece to leave on it's own they will be free to go as well. But this can't go on much longer, I hope.

Thu, 09/06/2012 - 10:21 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

"I cannot understand how the euro is still 1.25"

Can you say "competitive devaluation"?

How 'bout "least worstest"?

Aw, heck - how' bout "they're ALL a crock of shit"?

Thu, 09/06/2012 - 10:21 | Link to Comment stika
stika's picture

I agree, the eur is overvalued, the ecb has a bigger balance sheet than the FED, with no doubt lower quality, over a smaller economy. just this fact is worth a higher price of gold in eur than the dollar, ie eur$ < 1

Thu, 09/06/2012 - 10:19 | Link to Comment geewhiz190
geewhiz190's picture

EU stocks down?  which one?

Thu, 09/06/2012 - 10:19 | Link to Comment time2blowitup
time2blowitup's picture

Party like it's 2007!! 

Thu, 09/06/2012 - 10:20 | Link to Comment Lewshine
Lewshine's picture

OK, so now we are under the impression that the "bots" are buyers of last resort? Sure, why not! Here is reality, I've said it before, I'll say it again: These markets are on a hook. Draghi has to do nothing but SPEAK, Ben and the other printfest wealth robbing pirates hit control P with whatever chatter Draghi, Bernanke spew...And up we go. This is CENTRAL PLANNING. Leave nothing to chance. Draghi could have hummed God save the queen and the same thing would have happened. It doesn't make sense cuz it doesn't have to. 2+2= 14K pre election. By the way, Oil will get mutilated within the next few trading sessions - And could happen as early as today, because the reality of higher pump prices doesn't fit the storyline that Ben is busy creating...Before your eyes!

Thu, 09/06/2012 - 10:22 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Draghi could have farted "God save The Queen".

Now that would have been newsworthy!

Thu, 09/06/2012 - 10:38 | Link to Comment SAT 800
SAT 800's picture

Now Short three minni-S&P contracts from 1422 as of ten minutes. this is public enthusiasm; it needs it's little head stepped on. Will report results; but you will be able to see them for yourself. That's $150/ point as the index drops. Cheers.

Thu, 09/06/2012 - 11:13 | Link to Comment boiltherich
boiltherich's picture

"Spanish Prime Minister Mariano Rajoy and German Chancellor Angela Merkel said they did not discuss conditions for aid for Spain, despite expectations Rajoy would seek Germany's support for a bailout in a bilateral meeting in Madrid on Thursday."

 

So, why would Greece, Ireland, or Portugal, repay under the draconian terms they got for their bailouts if Spain and Italy will have their bonds bought up by the ECB with no questions asked and no conditions imposed?  That is not even legal under the terms of the EU treaties, that would be like the USA saying to Maine, South Carolina, and Wyoming that they have to slash state budgets and lay off workers in return for Federal dollars or Fed support for the banks in their states but New York, Texas, and California will get unlimited support with no strings attached. 

Maybe the European mind is just more servile, maybe they have a submission to authority complex, maybe the ECB understands that the larger the debtor the more aces they hold, that the debtors are in control after all.  In America though the smaller states just would not put up with differential treatment. 

Thu, 09/06/2012 - 11:34 | Link to Comment Snakeeyes
Snakeeyes's picture

Spain and Portugal saw 40 bp drops in their 10 year sov yields. But is it sustainable?

http://confoundedinterest.wordpress.com/2012/09/06/draghis-hard-road-ahead-greek-and-france-unemployment-rise/

Thu, 09/06/2012 - 12:36 | Link to Comment madridisburning
madridisburning's picture

Tyler doing his best imitation of a stopped clock. Well, he was 100%, dead-on, accurate for that one minute there and used it to grab himself a headline. But, then his minute past, and he wound up being almost totally wrong, yet again. Stop cheerleadinf yourself. It only fools the zombie cult here, altough I guess that is called playing to your audience. Countdown to Armegeddon, t - 4 million years. You'll get it right.....some century.

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