European equity markets are all closing down today with Spain leading the laggards down over 1% on the day. This is the seventh down day of the last eight for Europe's equity markets. Spanish bond spreads are wider for the sixth day of the last seven and now almost 60bps off their post-Draghi tights as once again the fast-money front-runners step away leaving a truer picture of the state of Europe. Interestingly, Italy underperformed Spain (in bond-land) today - something we haven't seen in weeks - which appears to be Italian bonds reverting their exuberance back to Italian stock levels. Notably, just as in the US, broad European stocks pushed a little higher into the close (after US early close) while credit markets bled weaker - closing near their worst levels of the day. EURUSD was down 30 pips or so (with an 80 pip hi-lo swing) - hovering around 1.29 - until it decided to zoom into the last few minutes, which pinged stocks a little.
[6]
European credit markets (post US early close) were decidedly less sanguine than stocks...
[7]
and EURUSD was lower and stable until the end of day rampfest began...
[8]
Spain Bonds and Stocks appeared to recouple in the last few days...
[9]
but Italian bonds remain 'exuberant' and perhaps helps explain today's underperformance as sellers start to pressure than back to reality...
[10]
Charts: Bloomberg