In the last week, both European and US equity markets have valiantly attempted to extend their rally into the stratosphere while the credit market has summarily dismissed this exuberance as 'oh those silly algo-driven momo monkeys'. Yesterday and today we have seen equities in both regions retrace aggressively to the much more realistic, liquidity spigot-lacking margin-compressing growth-slowing reality that credit has been pricing in.
US markets have extended and retraced once again and credit is now at multi-week wides...
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and European equity markets were downright ignorant of the reality occurring in European financial and non-financial credit markets...
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Charts: Bloomberg