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Europe Opens Week In the Red

Tyler Durden's picture




 

Every European stock index closed red today - that is something we have not seen in a few weeks. The drops were not dramatic - and in fact IBEX rallied from open to close after an ugly start to the day. Spanish and Portuguese bond markets sold off notably (in the front- and back-ends of the curve) and given its place as fulcrum security we suspect the slight underperformance in European credit markets relative to stocks indicates the Draghi-induced reflex buying is starting to fade. Swiss 2Y was stable; European VIX rose modestly; and EURUSD which saw some violent swings into the US day-session open is ending its day fractionally lower. All-in-all, given recent strength and momentum, sovereigns have definitely stalled and equities will need a catalyst now (Spanish bailout?).

European Sovereign bond spreads...

 

and EURUSD...

 

Question is - are Spanish bond spreads right this time? or IBEX - like last time?

 

Chart: Bloomberg

 

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Mon, 09/17/2012 - 11:54 | 2803660 vote_libertaria...
vote_libertarian_party's picture

ummm....buy AAPL???

Mon, 09/17/2012 - 12:03 | 2803693 Falkor
Falkor's picture

Hit the NOX

Mon, 09/17/2012 - 12:18 | 2803749 common_sense
common_sense's picture

SPAIN MUST GO OUT OF THE EUROZONE, EVEN BEFORE GRECCIA LEAVES!

RIGHT NOW!!

Mon, 09/17/2012 - 12:48 | 2803872 JamesBond
JamesBond's picture

http://www.japantimes.co.jp/text/fl20120916x1.html

 

Japan, you're behind the times.  Our HFT algos have been cheating humans for years now.

 

jb

Mon, 09/17/2012 - 12:55 | 2803896 Rip van Wrinkle
Rip van Wrinkle's picture

Shows what a f*cked up market this is. The markets need a catalyst....the fourth largest Eurozone country applying for a bailout.

 

Christ, if the third largest and the second largest need bailouts down the line, this market is going to take off!!

Mon, 09/17/2012 - 13:17 | 2803967 Haager
Haager's picture

FB is red, Apples are green - nothing to worry about.

And the EURUSD-behaviour could be explained with the WSJ naming the Euro as a sound currency.

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