Europe Opens Week In the Red
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...
Question is - are Spanish bond spreads right this time? or IBEX - like last time?
- advertisements -