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European Bloodbath Continues

Tyler Durden's picture




 

Europe was a sea of red (apart from Bund prices) today. With yesterday's window-dressing done and overnight dismissal of Spain's hopeful ECB-workaround, European equity and credit markets were dismal, EURUSD ended under 1.2400, and 2Y Bunds at 0.00% yield. Financials underperformed in stocks and credit with senior bank spreads back up to 300bps and LTRO Stigma jumping 12bps to 177.5bps (near record wides). Spain and Italy dominated both single-name banking and non-banking credit and equity moves as well as sovereigns with Spanish 10Y now +45bps on the week and Italy +37bps (with Belgium, France, and Austria all around 9bps wider). All European equity indices are down for the week with Spain down almost 8%. EUR-USD 3Y basis swaps turned back lower (worse) back to -70bps - not a good sign for funding (especially in light of the drop in LTRO we noted yesterday). On a final note of despair, Spanish 2s10s is now flatter than at any time since LTRO1 - implying that any LTRO debt used to fund a real carry trade is now a loser.

European sovereigns dismal...

and while European stocks (blue) have retraced most of the recent hope-driven rally, Crossover credit (black) remains rich as its high beta dispersion (green oval) has not fallen back to earth. Note also the financials (red and light blue) underperforming...

All European equity indices are down for the week with Spain's IBEX unsurprisingly the biggest loser down almost 8% (and the Swiss best at just under unch)...

and Spanish 2s10s curve is now flatter than any time post LTRO1 - so any of that LTRO debt used to fund a real carry-trade (as opposed to the losses on direct sovereign purchases) are now underwater...

 

Charts: Bloomberg

 

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Wed, 05/30/2012 - 12:16 | 2475972 CrashisOptimistic
CrashisOptimistic's picture

Merkel and her people need to polish rebuttal rhetoric.

"Growth?  You have no growth!  You have deficit spending sugar.  That's not growth.  Growth is activity that takes place without the deficit.  You want growth, pursue that kind of growth."

 

Wed, 05/30/2012 - 12:17 | 2475979 NotApplicable
NotApplicable's picture

threadjack

Iran oil industry hit by Flame virus.

http://apnews.myway.com//article/20120530/D9V3280G0.html

/threadjack

Wed, 05/30/2012 - 12:21 | 2476016 john39
john39's picture

more israeli bullshit.  as if the world needed yet another example of israel breaking laws, destroying property, stealing and generally behaving like the spoiled little fascist midget it is.

Wed, 05/30/2012 - 12:21 | 2476024 Winston Smith 2009
Wed, 05/30/2012 - 12:48 | 2476147 NotApplicable
NotApplicable's picture

Wow, Flame is quite the advanced intelligence tool.

Looks like somebody is getting my money's worth.

Wed, 05/30/2012 - 21:37 | 2477934 StychoKiller
StychoKiller's picture

"...we discovered a new malware codenamed Worm.Win32.Flame."

WHY would anyone in their right mind be using WinBlowz Software these daze??

Wed, 05/30/2012 - 12:20 | 2476006 eclectic syncretist
eclectic syncretist's picture

Maybe the "interfering with capitalism" bubble is about to burst.

Wed, 05/30/2012 - 12:22 | 2476026 bigdumbnugly
bigdumbnugly's picture

yep.  that's not how vlad the impaler would've handled it.

Wed, 05/30/2012 - 12:50 | 2476160 LMAOLORI
LMAOLORI's picture

WHEN Will We Talk About The ACTUAL Issue?

http://market-ticker.org/akcs-www?post=206591

Wed, 05/30/2012 - 13:09 | 2476275 LeonardoFibonacci
LeonardoFibonacci's picture

Deutsche Mark ready to go into circulation.  Germany has printed its own currency and is sitting in Central Bank vault waiting for Angela Merkel to give her lovely wink wink, and it is ball game over!

 

schnell schnell schnell schnell schnell schnell schnell schnell schnell!!!!!!!!!

Wed, 05/30/2012 - 12:16 | 2475974 The Axe
The Axe's picture

GOLD     LONG GOLD      the shit is acting great

Wed, 05/30/2012 - 12:18 | 2475991 homersimpson
homersimpson's picture

Anyone else need a paper bag after the wild ride by NUGT today? Phew!

Wed, 05/30/2012 - 12:20 | 2476017 scatterbrains
scatterbrains's picture

or is it a set up before a "lights out" move once our markets close.  If gold is moving on advance printing inside info then why isn't jjc/iyr/uga/uup etc throwing off confirming signals?

Wed, 05/30/2012 - 12:25 | 2476023 VonManstein
VonManstein's picture

and with uber strong dollar too.. wait for a reversal and gold will explode.... not just yet though

 

@scatterbrains

there is already plenty of news out there to support gold.. it doesnt need to be anticipating anything.. rates at ZERO is gonna drive her wayyyy up.. ignore the QE talk and keep staking

Wed, 05/30/2012 - 12:50 | 2476088 scatterbrains
scatterbrains's picture

I like your "not just yet",  but do you think the CB's can resist throwing a haymaker while gold is stumbling around punch drunk?   I'll be increasing my stack in due time for sure.

Speaking of setups, Ginlser on Bloomberg radio tomorrow. So now I'm wondering if and where the Bernank or his peanut gallery at the fed will be adding their comments? (coincidentally while gold is collapsing through 1550ish) or are they saving that for the next time BB has to face RP?

 

Wed, 05/30/2012 - 12:36 | 2476090 Quinvarius
Quinvarius's picture

Gold is saying something. Most likely it is saying a printfest is at hand.  Back in 2009, gold was back up at all time highs on bailout theory while stocks were still at lows.  It will probably go apeshit before stocks again.

Wed, 05/30/2012 - 12:54 | 2476190 VonManstein
VonManstein's picture

it will go balistic if (when) we get a print of course.. but what im saying is it doesnt need a print as interest rates will drive her upwards regardless. bull market began in 2001 with no QE in sight and we have already had trillions printed.. The gold boom is not dependant on QE only on negative rates, QE will just accentuate the moves.

i been buying every months for the past three. bought last week.. thatll do for now and we'll see what benny has to say, if he says no i'll buy more.. if he says yes then im waiting for the next dip.

look how much the dollar depends on the news.. in order for it to be "strong" the world need a hole continent to be melting up.. that is not sustainable and is not gonna last.. and it looks as if gold is slwly going back to its roots as a safe haven currency that can run alongside the dollar

Wed, 05/30/2012 - 12:16 | 2475976 Big Beta Bill
Big Beta Bill's picture

whipsaw summer

Wed, 05/30/2012 - 12:21 | 2476025 tocointhephrase
tocointhephrase's picture

Bring it!

Wed, 05/30/2012 - 12:16 | 2475978 francis_sawyer
francis_sawyer's picture

Zombies, vampire flicks, & bloodbaths...

Every day is like waking up in a "B" grade movie...

Wed, 05/30/2012 - 12:18 | 2475996 slaughterer
slaughterer's picture

Yes, Europe is the new "Switchblade Sisters" aka "Jezebels"

Wed, 05/30/2012 - 12:22 | 2476028 crawldaddy
crawldaddy's picture

yep, and we even can get bad acting as well, just turn on CNBC.  

Wed, 05/30/2012 - 12:28 | 2476053 ThirdWorldDude
ThirdWorldDude's picture

Cheer up, at least the soundtrack is good.  

http://www.youtube.com/watch?v=YSKNOdkzJCI

Wed, 05/30/2012 - 12:30 | 2476067 Possible Impact
Possible Impact's picture

Squids, you forgot the squids...

 

Wed, 05/30/2012 - 12:17 | 2475982 q99x2
q99x2's picture

Does this mean I'll get to stay in my house or will I have to go out to hunt food.

Wed, 05/30/2012 - 12:24 | 2476040 francis_sawyer
francis_sawyer's picture

yes

Wed, 05/30/2012 - 12:18 | 2475988 Winston Smith 2009
Winston Smith 2009's picture

Darn!  Where's the Nth "rescue plan" when you need one!?  Queue carnival music...

Wed, 05/30/2012 - 12:18 | 2475990 penexpers
penexpers's picture

 

May 30 (Reuters) - Greece's largest lender National Bank on Wednesday reported a 537 million euro ($666 million) loss

http://www.reuters.com/article/2012/05/30/nationalbank-idUSA8E8GD01I2012...

GOD HELP US.

 

Wed, 05/30/2012 - 12:18 | 2475993 SmoothCoolSmoke
SmoothCoolSmoke's picture

Bloodbath?  Hmmmmm, DAX 5000, now THAT would be a bloodbath.   

Wed, 05/30/2012 - 12:20 | 2476007 slaughterer
slaughterer's picture

HYG is doing well, however. 

Wed, 05/30/2012 - 12:20 | 2476011 Dagny Taggart
Dagny Taggart's picture

The miners sure are responding nicely. https://www.youtube.com/watch?v=5akEgsZSfhg

Wed, 05/30/2012 - 12:33 | 2476075 Quinvarius
Quinvarius's picture

Anyone still holding miners after the latest slaughter is never selling. 

Wed, 05/30/2012 - 12:54 | 2476185 Dagny Taggart
Dagny Taggart's picture

About 8 to 10 weeks after QE3 commences would actually be a great time to cash in...

Wed, 05/30/2012 - 12:58 | 2476197 Cognitive Dissonance
Cognitive Dissonance's picture

Thus the weak hands have been washed out. Time to rally.

I don't hold PMs because I believe in Gold and Silver. I believe in the central bank insanity and the only "solution" they have to apply.

Long printing presses and Miners.

P.S. I will dump Miners when central bankers come back to their senses.

Wed, 05/30/2012 - 13:17 | 2476329 NotApplicable
NotApplicable's picture

Or when Chavez et al. nationalize/royalty them out from underneath you.

Wed, 05/30/2012 - 14:04 | 2476533 Cognitive Dissonance
Cognitive Dissonance's picture

That is a distinct possibility and something I mentioned when I wrote about this subject. I have suspected for a while now that this is the reason why Miners have underperformed for several years now.

Either way it is not a permanent hold. Eventually it will be time to sell the PMs and Miners. The trick is to know when......and not to fall in love with your PM Mistress.

http://www.zerohedge.com/contributed/golden-end-game-%E2%80%93-thought-experiment

http://www.zerohedge.com/contributed/golden-end-game-%E2%80%93-thought-experiment-part-two

Wed, 05/30/2012 - 12:21 | 2476021 Roland99
Roland99's picture

Everyone will soon be living in a Spanish Harlem

http://www.youtube.com/watch?v=OGd6CdtOqEE

 

Wed, 05/30/2012 - 12:22 | 2476030 Rainman
Rainman's picture

1.24 ....?? Oil under 90....?? Seems about time for Chairsatan to drop his cock and grab his socks.

Wed, 05/30/2012 - 13:01 | 2476239 junkyardjack
junkyardjack's picture

Oil got down to the $70s in the fall. US Equities still have some airing out to do...

Wed, 05/30/2012 - 12:25 | 2476045 midgetrannyporn
midgetrannyporn's picture

the bernank will make those pigs fly!

Wed, 05/30/2012 - 12:28 | 2476059 Quinvarius
Quinvarius's picture

The question is, do you bite on the 14% dividend yields here?  There is some seriously cheap stock in Euroland right now, if you accept the risk.  I think banks should be avoided on the principal of avoiding ground zero.  But man, sweet deals abound.

Wed, 05/30/2012 - 12:42 | 2476126 brooklynlou
brooklynlou's picture

This is the "we lit the fuse discount"

Wait for the "It blew up" discount ...

Wed, 05/30/2012 - 12:31 | 2476071 monopoly
monopoly's picture

What an amazing day. This is better than Space Mountain.

Wed, 05/30/2012 - 12:35 | 2476077 Conman
Conman's picture

I could have sworn i saw the Dow down 166.6 a sec ago.

Wed, 05/30/2012 - 12:34 | 2476080 gatorengineer
gatorengineer's picture

Where is the systemic stress??????  Should we be having alot of Morgan Moments?

Wed, 05/30/2012 - 12:34 | 2476083 nomorebuyins
nomorebuyins's picture

Down 1.5% s&p ramp soon coming to a screen near you.

Wed, 05/30/2012 - 13:00 | 2476228 junkyardjack
junkyardjack's picture

1310 is the support

Wed, 05/30/2012 - 12:37 | 2476099 eddiebe
eddiebe's picture

Nowhere to run, nowhere to hide except..... GOLD

Wed, 05/30/2012 - 13:00 | 2476231 junkyardjack
junkyardjack's picture

Or treasuries

Wed, 05/30/2012 - 12:39 | 2476105 ruttrow
ruttrow's picture

[redacted]

Wed, 05/30/2012 - 12:42 | 2476124 papaswamp
papaswamp's picture

I get nervous when I see gold do an about face and run up WITH the USD. Something isn't right...signalling a collapsing currency somewhere in the world....I assume the EUR.

Wed, 05/30/2012 - 12:56 | 2476204 jimmyjames
jimmyjames's picture

I get nervous when I see gold do an about face and run up WITH the USD. Something isn't right...signalling a collapsing currency somewhere in the world....I assume the EUR.

***********

I don't think it signals a currency crises at this point-

USD/UST/Gold all up-all other currencies/commodities and stock markets down-

This is a deflation trade--the true flight to safety-

Wed, 05/30/2012 - 12:43 | 2476131 monopoly
monopoly's picture

So who is the idiot that keeps knocking us. Poor bastard.

Wed, 05/30/2012 - 12:50 | 2476163 fuu
fuu's picture

http://www.zerohedge.com/news/faceberg#comment-2472785

ruttrow

HAHA I just clicked the down arrow on everyones post above.

Wed, 05/30/2012 - 13:10 | 2476281 janus
janus's picture

monkeys never learn, or do they?

good to see you, fuu...i loved your compostions, especially the trav777 magnum opus (but i kind of miss that low-life, scum-bag bigoted-shill).

and, as always: FUU, too.

janus

Wed, 05/30/2012 - 13:40 | 2476427 fuu
fuu's picture

Best bio ever really.

Wed, 05/30/2012 - 13:49 | 2476464 janus
janus's picture

well, you know, i stole (and then bastardized) it from napoleon...and we all owe him a debt of gratitude -- not just janus.

simper janus

Wed, 05/30/2012 - 14:51 | 2476778 IrritableBowels
IrritableBowels's picture

BOOTED!

Wed, 05/30/2012 - 14:53 | 2476788 janus
janus's picture

nice.  i think i get your idiom.

i think you'll like this guy if you don't already.

http://www.youtube.com/watch?v=RZmxNM6DwsY&feature=related

http://www.youtube.com/watch?v=ktwhdM1-ZOk

should inspire.

you're welcome.

janus

Wed, 05/30/2012 - 15:29 | 2476963 fuu
fuu's picture

Spencer is the real deal.

Wed, 05/30/2012 - 16:35 | 2477255 janus
janus's picture

Judah make me wanna dance!

i thought you were cool, fuu;

this confirms it.

Wed, 05/30/2012 - 15:04 | 2476842 slewie the pi-rat
slewie the pi-rat's picture

are you drinking with tyler again?

see what he thinks of ralphNader;  i can maybe get 10% if tyler wants to screw around

that's not a promise, tho

wtf how about 75%?  go4it.  maybe tyler can get a new vespa to go with that great fringe jacket we gave him for the holiDaze

Wed, 05/30/2012 - 15:30 | 2476953 fuu
fuu's picture

Tyler has only spoken to me once and he whipped my ass. Marla once re-dropped a song when I asked.

Wed, 05/30/2012 - 12:49 | 2476144 BluePill
BluePill's picture

All South EU countries will go down, And there will be Civil war in all north african and middleast countries

 

The plan is to change the face of EU--This has been Jewish plan all along..

 

Jewish parasite has sucked American blood and now it has no place to go.

 

It can't rely on China as parasite jews are easily noticed ( although they are internarrying to spread their parasite Gene pool into ASIA)

 

They can ofcourse enter into india and spread their filth but you see parasite will never cohabit another Parasite which is India ( A nation of over a billion parasites)

 

So even if Parasite Jews want to migrate to India and settle there and feed on them, they wont as India itself is a open sewer--its like re-entering their Warsaw Ghetto again

 

So Parasite Jew after screwing USA, Is once again planning to move to his previous Location that Is Europe

from where he has been kicked out several times, now his survival and his survival of fellow parasite race is in jeopardy so

 

Parasite jew devised a plan to change the face of Europe in few decades with Multi culturalism and Feed on the productivity of other races while enjoying and swindling them

 

But as Jewish curse says

 

" May you Rise in your life and acheive success and then  loose later everything"

 

Jew is destined to capture everything and lose everything-

 

 

but Always remember,-A parasite is born to destroy not to create

 

 

Wed, 05/30/2012 - 12:48 | 2476150 eclectic syncretist
eclectic syncretist's picture

VISA warns on state of consumers.

 

How about these gems on the true state of consumers?

 

Highlights from today's VISA 8-K filing

 

For the month of April 2012, U.S. credit payments volume growth was positive 8% and debit payments volume growth was negative 12%.

Through May 28, 2012, U.S. credit payments volume growth was positive 10% and debit payments volume growth was negative 8%.

http://www.sec.gov/Archives/edgar/data/1403161/000119312512252191/d36048...


Wed, 05/30/2012 - 12:49 | 2476155 magpie
magpie's picture

And once again, i notice the GBP again becoming a risk on/off currency and the volatility on the FTSE pick up (relative to the continents indices).

Wed, 05/30/2012 - 12:49 | 2476158 janus
janus's picture

Musical Score for today's action...and a peak into 'the future':

http://www.youtube.com/watch?v=rfZGy6ykaeU

http://www.youtube.com/watch?v=K1GFWRicUmU

http://www.youtube.com/watch?v=hWYVGiPEEpc

http://www.youtube.com/watch?v=XycBLF6kWuY&feature=related

if Man is five, then the devil is six;

and if the devil is six; then God is Seven...

this monkey's gone to Heaven.

Love,

janus (the monkey man -- http://www.youtube.com/watch?v=HNY8eYmzdH4)

PS. http://www.youtube.com/watch?v=pWntr9yWRqU 

555

 

 

Wed, 05/30/2012 - 12:50 | 2476161 xcehn
xcehn's picture

Those 'contingency' plans for the Eurozone collapse that is 'not expected to happen' had better be detailed.

http://www.independent.co.uk/news/world/europe/world-scrambles-to-prepar...

Wed, 05/30/2012 - 13:13 | 2476299 FreeMktFisherMN
FreeMktFisherMN's picture

When does Pt become something to consider? I don't know much about its history. I know it's not in the metals-that-have-stood-the-test-of-time-as-money echelon, but it usually is near gold and now is way down. Or is this simply the divergence as it goes down as a commodity more in line with sluggish growth in autos (catalytic converters) instead of safe haven?

Wed, 05/30/2012 - 13:16 | 2476317 nomorebuyins
nomorebuyins's picture

CNBS has a lot of news on fb and zynga today, and Simon just came out with his daily de-coupling theory. Why why why do i watch this crap?

Wed, 05/30/2012 - 13:20 | 2476348 xcehn
xcehn's picture

"Markets are now in for a white-knuckle roller coaster ride. The news that a “run on the bank” may be underway is now spreading like wildfire, and companies are apparently even taking each day’s proceeds out of the likes of Spain, Italy and of course, Greece, and sending them to U.K. banks where their safety is perceived as better, for the time being....The sensitivity of the topic of “bank runs” is so inflammatory, that the concentrated silence on the issue by mainstream financial media demonstrates the influence of government on media. Despite the fact that Greek depositors have pulled about 17% of the cash on hand out of the Greek system, totaling 38 billion euros for the 12 months ended March 2012, the world press remains largely mum on the subject, clearly fearing the catalyzing of a spread of such panic."

http://www.midasletter.com/index.php/a-run-on-the-bank/

Wed, 05/30/2012 - 17:59 | 2477507 Snakeeyes
Snakeeyes's picture

Both U.S. and Europe consumer confidence is falling. And US 10 year Treasuries hit 1.6%!

http://confoundedinterest.wordpress.com/2012/05/30/europe-joins-u-s-in-slumping-consumer-confidence-10-yr-treasury-yield-falls-to-1-62/

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