Europe Opens Weak, Credit Ugly And Financials Floundering

Tyler Durden's picture

No big surprise as Europe opens to a crowd of sellers. The EUR has stabilized from its drop a little in the last hour or so but commodities and PMs continue to slide. Italian banks appear to be bearing the brunt for now with Intesa and Unicredit down 4-5%, but most of the major banks are down at least 3%. 

Chart: Bloomberg

Credit markets appear worst hit overall with dramatic moves in XOver and Senior Financials. It is worth considering that the stresses in the financials and sovereigns are well-and-truly spreading to the non-financials - even investment grade credits - as ITRX Main ExFINLs is 10bps wider on the day at 171bps! As we noted in a previous post, Asian credit was hit hard, particularly the major sovereigns and for now S&P futures are back to their overnight lows down around 1% from the US close.


Copper is accelerating to the downside (-7.7% this week) but gold is outperforming among the metals/commodities complex even as the USD (DXY) has gained 1.8% since Friday's close.

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Id fight Gandhi's picture

Begun the global recession has.

Oh regional Indian's picture

Right now, i'd fight Gandhi too.

And India is down. Asia in general is down. No stick saves here either. 

i'd say these three days (21-22-23) mark a real turning point in a year of turning points.

Turning, burning, just like Proud Mary.


The Curious Case of Troy Davis

Spirit Of Truth's picture

Tis the beginning of the "Fall" season....after all it is: 

Autumn Panic Update

falak pema's picture


Troy Davis : 20 years on death row. Now dead. Its a country where there is no soul in justice. 7 witnesses recanted, no retrial.

Mitzibitzi's picture

Lost a planet, the ECB has. How embarrassing!

j0nx's picture

Continuing the global DEpression is. - There fixed it for you.

Zer0henge's picture

It looks fugly bitchez!

Frankie Carbone's picture

The bearish side of the force one must embrace. 

Id fight Gandhi's picture

Hang seng down over 5.1% to year lows. Anyone know what circuit breakers they have, I don't follow it other than the index tape

cychan4's picture

There is no circuit breaker in place in Hong Kong’s securities market

CapitalistRock's picture

Holy crap. You mean they have a real marketplace? I didn't think those existed anymore.

The4thStooge's picture

Markets finally looked down and realized the edge of the cliff is a month behind them.

TheArmageddonTrader's picture

Looks like the Tylers have got a new recruit. A good addition.

janus's picture

i love the myth, but...

yeah, the sentences are crisp and well composed.  i see the unmistakeable charecteristics of a trained pro; but, if he's got integrity, we'll forgive him for it.


Yen Cross's picture

2008 isn't coming. it's upon us, and this time it's going to be (big time Bad)... I'm fully hedged, and locking the doors.

 Any fool that is buying dollars is plain stupid!

Don Smith's picture

The dollar strengthening. I'll never understand that... The government is going to shut down, the Fed announces a $400B intervention, though it's not exactly printing, since they're selling the short end, but FUCK, WTF!

jomama's picture

and PMs getting faceraped again.

makes sense to me!

The Limerick King's picture



As the fiat game draws to a close

And the last petal falls from the rose

To those who used stealth

To inflate their own wealth

May you never find solemn repose


NuYawkFrankie's picture

My name is Buffet, and I like to preen,

'Specially with Becky on the tee-vee screen,

The 'Oracle of Omaha' - don't you know,

With my snout in the trough of bailout dough,

Though I'll plead in public to pay more tax

I'll be moving my bank-crap onto your backs!

'Cause after all, though I like to preen,

I'm just the world's biggest Welfare Queen!

buzzsaw99's picture

Old Man Buffett
Sat on a tuffet
Eating his bullish ways
Along came a SPYder
Which fell down in cider
And (puts) put greedy Buffett in his grave

The Limerick King's picture

Well done Frankie.....I think I hear a Rap beat in the bankground of this one!

Tuffmug's picture

And the Bear begins to feast on the stunned and helpless Bull......

El Gordo's picture

Buy silver, and as it goes down, buy a little more.

Thepnr's picture


Squid: "Please, sir, I want some more."

Bernanke: "Squid Twist has asked for more!"

Bernanke: "Come, Squid! Wipe your eyes with the cuffs of your jacket, and don't cry into your gruel; that's a very foolish action, Squid."

Dickens: “But, tears were not the things to find their way to Mr. Bernanke's soul; his heart was waterproof.


Tic tock's picture

after thinking about it for a bit, there are no natural buyers for european debt and the Fed is going to be - a sub 1% money supplier for the next ten years.

I'd say that pretty much qualifies PMs' as money from hereabout in,

campag's picture

Greeks will now get there money - soon . Pressure on IMF behind the closed doors huge

El Gordo's picture

I'm riding this slide all the way down, spending everything as I go.  Whoopee!!  More fun that a barrel of bastards.

Yen Cross's picture

Looking @ the July 13th (weekly) candle (2008) on aud/usd 98.5 area, might turn into resistance, if the 97 handle gets taken out.

 This selloff is already 3 days longer than the 1.1075 to 0.9925 selloff last month.

Hephasteus's picture

Credit gonna snatch your ponzi equity market bald headed!!!!!!

campag's picture

IMF Greek announcement in Washinton this afternoon?

Coldfire's picture

In times like these one is reminded of the immortal words of T. Herman Zweibel:


JANUARY 19, 2000 | ISSUE 36•01

Yesterday, I was listening to Beavers, my aide-de-camp and advisor in matters financial, narrate the financial abstract of my vast personal fortune when he mentioned in passing that I was doing quite well in the Stock-Market. This was, of course, no real news to me, as my stock position has always been top-drawer; decent market holdings are necessary both to balance one's cash position and to leaven one's investments in real estate, Swiss gold, and the slave-trade of Far Araby.

But then Beavers mentioned that the Stock-Market seems to be under-going a tremendous boom, resulting in a time of vast prosperity for countless others, as well!

My ire aroused, I demanded that he give a full account of this unnatural ubiquity of wealth. Apparently, the Market has spread its lovely, avaricious legs to every low-rent merchant with two cents to rub together and rewarding self same oafs with undeservedly high returns!

A torrent of steaming black ichor shot from my nostrils as this news sent me into a fresh rage. What has become of the free market if any half-wit can engage in open trade? Why, if we stay this course, a large "middle-class" could arise, wherein the lowliest fishmonger could purchase food, shelter, and clothing in exchange for a mere life-time of crushing debt!

Though Beavers has assured me that the poor are worse off than ever, I am significantly aggrieved by his mention of individuals, some under the age of 60, who have made small fortunes through the clever manipulation of a new type of calculating-engine, and who will doubtless spend it all on raccoon coats and bathtubs of gin. This happened once before, and I barely acted in time to stop it. Tomorrow, when the Boston exchange opens, I shall sell all my holdings in Consolidated Steam and unload six million Weimar Republic Deutschmarks. This, combined with the emptying from Zweibel ware-houses of 60 years' storage of pork bellies and Dr. Klimpt's Poultry Liniment, should cause a run on the market that will see New York in flames by the after-noon.

History has forgotten that, though market-crashes result in times of high criminality, as well as suicide amongst the destitute poor, there is also a down-side: I shall miss my poultry liniment. Still, in times like these, we all must sacrifice something for the good of the Republic.


The Vizier's picture

Think Funding...

Irish66's picture

Has the euro been under 1.35 since it opened?

ZeroPower's picture

Under 1.36 since Asia and London opens

nmewn's picture

Scotty, if you have anything left, now would be a good time.

Scotty? Mr.Scott!?!

Mitzibitzi's picture

Sulu: "Faster!"

Helmsman: "The printing press is at maximum. Any more and she'll fly apart!"

Sulu: "Fly her apart then!"

msmith's picture

Can we get a pullback in the EURUSD?  The EURUSD continues to tank.  The USD Index is flying higher


AUDUSD - that Aussie is just getting hammered.

Irish66's picture

I have 1.3230 as the point were everything breaks

falak pema's picture

i love these make or break points. Its like the line drawn on the sand in school days. We used to play : You cross, you ded! 

So 1.34 doesn't do the trick! Wow, its soooo mysterious this 1.3230...maybe its an illuminati code...or is it irish brode?


MFL8240's picture

Means nothing, Gold down on more manipulation by the criminals.  This shit is real old!

kito's picture

We saw the same thing a month or so ago. Everybody chill. Looked outside my window, no looting yet......

buzzsaw99's picture

there will be riots and tanks in the street if the market goes down. hank told me.

overmedicatedundersexed's picture

confidence in the Dollar all the rest are dogs..King Dollar.

PM's are the Kings whipping boy..and whip them they will

Oil now Oil may be a problem for the King

Ave investors if smart will run and hide

banksters think it's a gimmie

someone is very wrong

Tza, Sds, faz will they feast today?