No news is good news apparently. European stocks had their best day in over seven months today. Spanish and Italian equity indices surged - now +4.7% on the week. Italian bank stocks were halted limit up. European bank stocks smashed 6% higher - the biggest rally day since early September. Sovereign bond spreads leaked lower (Italy/Spain -16-20bps on the week). EURUSD ended the EU session -20pips (but off over 65 pips from overnight highs). While stocks went out at their highs (and credit at its tights), Europe's VIX pushed notably off its lows into the close - ending at 19.2% (and Swiss2Y held near its lows of the year).
Best day in 7 months for EU banks... (jumping off that ledge of support)
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Best day in 7 months for Italian and Spanish stocks...
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But why was protection so bid into the close?
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Cjarts: Bloomberg