European Stocks Close Green With Credit 'Reality-Check' On Vacation

Tyler Durden's picture

With London closed, the market's 'police' were away and so the mice played. Credit markets (sovereign and corporate) went absolutely nowhere as trading was minimal to negligible but equities just could not help themselves as the path of least resistance was to retraced back up from Friday's loss. The move in European equities is simply catch up to Friday's post-European-close levitation in the US (admittedly with a little higher beta) and volume was as dismal as one would expect. FX markets are also dead with EURUSD up only 5 pips at the EU close - having traded in a 40 pip range since it opened on Sunday night (most of which was around the Asian and European data releases). Quiet - in a word - with reality returning tomorrow as London's credit traders come back.

European stocks catch-up to US performance but massively outperform FX and credit markets (which were dead)...

 

Chart: Bloomberg

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Fidel Sarcastro's picture

Headline algos pop ES on QE-talk yet again.  Simply amazing how that story never gets old.

SmoothCoolSmoke's picture

"amazing?", more like 'criminal' how it never gets old.

resurger's picture

it's rather pathatic Fidel ..

Dollar Bill Hiccup's picture

They're algos. They don't sit at home waiting for a phone to ring, they don't think about what they're going to get for Christmas or where they're going for vacation.

They are iterative functions.

They are the perfect audience for those headlines.

Dr. Engali's picture

Pathetic..many of these markets are within striking distance of their all time highs based on whether or not central banks will print.

Mr Lennon Hendrix's picture

Europe is going to collapse!

King Dollar!

ArrestBobRubin's picture

"as London's credit traders come back."

Pardon, but don't you mean London's debt traitors???

adr's picture

and yet CNN has a story that claims economists and investors don't want QE3

Investors and economists agree: No QE3

http://money.cnn.com/2012/08/26/news/economy/federal-reserve-qe3/index.h...

resurger's picture

Thsoe wall street fuckers dont get it or what? Bullish on everything ...

id like to buy stocks on 30% or 40% discount, is that hard to comprehend for those fuckers...

Bullish & Buy is the only Mantra with those guys, and it's getting really boring.

slaughterer's picture

QE3, QE4, QE5 -- fuck it, is that all we have to speculatie about?  That, and how many oil rigs weak ol Isaac is going to put out of production? This is stupid.  I m going on vacation.   Fuck you Bernanke AND Draghi.  Morons.  

adsanalytics's picture

London traders were off enjoying the goat curries at the Notting Hill Carnival... The danger sign will be once credit markets begin diverging from equities as we saw in 2007. So, far all clear (after the jump).

 

http://www.adsanalytics.com/dashboard/docs/dashboard.php?treepage=tree_d...

 

J.S.