Catching up to the apparent 'good news' from the Spanish bank audit debacle and as we noted earlier, the smallest of beats in a singular data item, provided some support for equity prices in Europe today. It appeared as though traders had reduced weight or been modestly short-biased into the news and the lack of events spurred a reversal - which on its own looks good but merely returns us to Thursday's close (or not even for Spain). In other markets, the US ISM data spurred a jump which was immediately faded in both EURUSD, European sovereigns, and European corporate/financial credit markets. Bottom line - European equities round-tripped from Thursday but credit markets are much less sanguine.
European Stocks rebounded from Friday's weakness (but IBEX remains weaker)...
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European sovereigns were limping tighter (more on Germany's beat) but deteriorated rapidly into the close after spiking on US ISM data...
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and European stocks remain far more sanguine than credit markets...
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Charts: Bloomberg