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As Europe Re-Opens Spanish Stocks Close Near 9 Year Lows

Tyler Durden's picture





 

After a peaceful relaxing public disturbance or two during yesterday's May-Day holidays in Europe, the overnight data was disastrous and European risk markets responded in kind. Spain's IBEX traded below the March 2009 closing lows (though shy of the intraday lows) as it is almost back to levels not seen since Q3 2003 (with an intraday low today of 6776.5 versus 3/9/09's low of 6702.6) with its biggest drop in 2 weeks. Spanish and Italian bond yields (and spreads) pushed notably higher - back near last week's worst levels as the whole of the sovereign complex leaked wider today and financials, in their entirely consumed and joined-at-the-hip manner fell the most in 2 weeks - also near recent lows which would take EU bank stock values back beyond March 2009 levels to mid 1998 lows incredibly (where's Tilson when we need him?). It would appear some profit-taking in the LTRO-Stigma trade is occurring, rightfully so after a more than double, but non-LTRO banks outperformed today as LTRO-encumbered banks leaked back wider. European credit markets were open yesterday (since UK was not on vacation where the bulk of CDS market-making occurs) and we note that today saw investment grade credit (along with stocks) underperform (below Monday's close) - as we suspect 'cheap' hedges were grabbed while crossover credit and financials remain modestly tighter than Monday's close (even as their stocks are worse). Whether this is an up-in-capital-structure rotation on the back of hopes for new capital or merely a reflection of liquidity this week is unclear but it is worth watching as subordinated financial spreads are the outperformer off the 4/23 lows now.

 

Spain's IBEX index nearing 2003 levels...

European bank stocks are even worse - nearing levels not seen since 1988...

but subordinated financial spreads remain modest outperformers in the last week's rally as stocks and investment grade credit underperform...

 

Charts: Bloomberg

 


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Wed, 05/02/2012 - 12:32 | Link to Comment jus_lite_reading
jus_lite_reading's picture

C'mon! Admit it! How many of our Spanish friends STILL have money "invested" in stocks and money at the banks?

You guys will have to learn the hard way as the S is about to HTF!!

Wed, 05/02/2012 - 12:33 | Link to Comment maxmad
maxmad's picture

Collapse Bitchez!

Wed, 05/02/2012 - 12:35 | Link to Comment maxmad
maxmad's picture

Or should I say "Colapso Puta!"

Wed, 05/02/2012 - 12:41 | Link to Comment derek_vineyard
derek_vineyard's picture

the nasdaq just went green

Wed, 05/02/2012 - 12:49 | Link to Comment navy62802
navy62802's picture

obviously being driven by the underlying fundamentals ... hahahaha </evil laugh>

Wed, 05/02/2012 - 12:51 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Haven't you heard?  The Spaniards are skipping their mortgage payments too and buying iPads and iPhones instead.  We've taught them well...............

Wed, 05/02/2012 - 12:36 | Link to Comment barliman
barliman's picture

 

So much irony ...

Where are the glorious days of ...  February!  When Merkozy would fly to see one another in yet another display of unified leadership!

GONE ... Gone ... gone

 /s   (Can't wait to see what comes next)

barliman

Wed, 05/02/2012 - 13:12 | Link to Comment azzhatter
azzhatter's picture

If Sarko loses Sunday will Angie still get blowjobs from him?

Wed, 05/02/2012 - 13:34 | Link to Comment barliman
barliman's picture

 

No ...

... but she isn't concerned. Apparently, Hollande gives a rim job with a reach around that is to die for.

barliman

Wed, 05/02/2012 - 13:49 | Link to Comment IToldYouSo
IToldYouSo's picture

Barliman, you owe me a monitor!

Wed, 05/02/2012 - 12:38 | Link to Comment Desert Irish
Desert Irish's picture

The Tsunami is coming on so oh many levels......to the lifeboats bitchez .....oh shit I guess they were all offered up as collateral.

Wed, 05/02/2012 - 12:43 | Link to Comment LongSoupLine
LongSoupLine's picture

This must be bullish as SPX is now back over 1400.

I am yet again, amazed at the power of the corruption known as the US "market".

Wed, 05/02/2012 - 12:45 | Link to Comment Randall Cabot
Randall Cabot's picture

"Despite the recent string of weaker-than-expected economic news, John Fox, portfolio manager of the FAM Value Fund said he remains bullish on the U.S. economy.

"Things are still slowly getting better," said Fox, adding that the economy has been showing improvement year-over-year. "We just had a good quarter of earnings reports and you might see changes going on in Europe in the second half of the year with government changes and more pro-growth policies." "

 

 

 

 

http://www.cnbc.com/id/47261886   

Wed, 05/02/2012 - 15:53 | Link to Comment smb12321
smb12321's picture

You are still trying to analyze the market in news terms.  Profit-wise, it is responding accordingly as companies keep getting more creative on getting by with less.  The market is an amalgalm of technical data, news, forecasts and most important, perception.   If the perception is that as things worsen the FED will intervene then someone would be an idiot to go short.  Of course, it's idiotic to print more dollars but that's another story.  Don't fight the market but invest and keep those puts sliding upwards.

Wed, 05/02/2012 - 12:45 | Link to Comment midgetrannyporn
midgetrannyporn's picture

The great kleptocracy continues:

Carlyle Group LP (CG), in a transaction nine months before it filed to go public, saddled itself with debt to pay owners including William Conway, Daniel D’Aniello and David Rubenstein a $398.5 million tax-deferred dividend.

The private equity firm borrowed $500 million from Abu Dhabi’s Mubadala Development Co. in December 2010, saying it would use part of that to expand investment products. Instead, it paid out almost 80 percent of the money to existing owners, according to regulatory filings…

http://www.bloomberg.com/news/2012-03-13/carlyle-owners-took-400-million-tax-deferred-payout-before-ipo-with-debt.html

They took on debt, to pay themselves a special dividend, now they are going public. That means that every pension fund in america just paid these assholes a special divi when they buy their stock from them. Holy crap these guys have enormous brass ballz!

Wed, 05/02/2012 - 12:49 | Link to Comment Dr. Engali
Dr. Engali's picture

The fucked up thing is the fact the pension funds will buy a piece of shit like that.

Wed, 05/02/2012 - 12:56 | Link to Comment jus_lite_reading
jus_lite_reading's picture

You act as if this was something new!! LMAO

THE WHOLE MARKET has become a giant ponzi!! THEY "MAKE" more money selling stock to imbecile retirement fund managers than they do actual profit from selling something that adds to society (LOOK AT TOLL BROS!!! ).. and this my friend is why the game over. Everyone is talking about it... even people with peanuts to "invest" know that buying tangible assets like gold and silver are the only safe stores of value!!

THE GREAT PONZI IS UNWINDING!!!

Wed, 05/02/2012 - 13:18 | Link to Comment midgetrannyporn
midgetrannyporn's picture

The great kleptocracy continues:

 

If that sounds to you like I am acting as if this is something new then your reading comprehension uber-sux.

Wed, 05/02/2012 - 12:47 | Link to Comment Dr. Engali
Dr. Engali's picture

They clearly need to print more money and print it fast to fix this problem.

Wed, 05/02/2012 - 12:48 | Link to Comment disabledvet
disabledvet's picture

It's one thing to be buying distressed US debt as a "Milken-ite"...but quite another to be buying the euro denominated stuff. How do I hedge my "no more Union" risk? I would argue the EU is being forced to create a "euro Civil War bond" market. The "risk" must be traded...

Wed, 05/02/2012 - 12:49 | Link to Comment Henry Chinaski
Henry Chinaski's picture

You can tell the lamestream media is losing it by the absurdity of their reporting.  The lastest spin:  "The US economy may suck, but we are doing so much better than Spain."

Well, there's a great reason to maintain the status quo. [/sarc]

Wed, 05/02/2012 - 12:51 | Link to Comment Dr. Engali
Dr. Engali's picture

Yeah it's bad here but it's really bad over there , so just be happy you're being trickled down on instead of dumped on.

Wed, 05/02/2012 - 12:50 | Link to Comment Conman
Conman's picture

BTFD?

Wed, 05/02/2012 - 12:54 | Link to Comment carbonmutant
carbonmutant's picture

"drachma clauses" - bitchez

Wed, 05/02/2012 - 13:00 | Link to Comment Joebloinvestor
Joebloinvestor's picture

I would be wary of any stock in any Spanish company as it may not be a Spanish company if it is a different location in south america.

What is the stock worth if the company gets nationalized and by a different country?

 

Spain is getting hosed by its' neighbors.

Wed, 05/02/2012 - 13:06 | Link to Comment youngman
youngman's picture

UBS reported today..that over 12 billion in new customers cash has been deposited in their nice little super secret Swiss bank accounts......hmmmm..wonder where that came from....

Wed, 05/02/2012 - 13:15 | Link to Comment orangegeek
orangegeek's picture

And the Euro continues to move sideways as does the USD.

 

http://bullandbearmash.com/index/usd/daily/

 

Primary elliott wave count on the USD is long term bullish.

Wed, 05/02/2012 - 13:18 | Link to Comment Centurion9.41
Centurion9.41's picture

What's the difference between the chart of the S&P and Spain?

The Y-axis of the chart of the S&P has been divided into more tick marks; proportional to Uncle Ben's Ctrl+P.

Nominal numbers are for numbnuts.

Wed, 05/02/2012 - 13:39 | Link to Comment Silversem
Silversem's picture

sell the Spanish index with cfd's and you will be rewarded.....

Thu, 05/03/2012 - 03:44 | Link to Comment cnhedge
cnhedge's picture

US Daily: 2012 US April Payroll Preview: Sluggish
http://www.cnhedge.com/thread-4078-1-1.html
http://www.jinrongbaike.com/

Do NOT follow this link or you will be banned from the site!