Quite a day. European stocks exploded on the noise of the US payrolls beat this morning. Unusually Germany's DAX outperformed (as opposed to high beta momo monkeys like Spains IBEX or Italy's MIB) taking it to its best 8-day run in 18 months (sure, why not) and within 0.25% of its all-time intraday highs (but highest close ever). All European indices surged and while euphoria reigned throughout (for some reason), European sovereign bonds leaked higher in spread (deteriorated). EURUSD reversed its losses on NFP and stabilized unch from that data point (though 55 pips higher on the day) as EURJPY was the dominating pair. German and Swiss 2Y remain negative though both saw rates rise today. Europe's VIX collapsed from 20.5% to under 17.5% today, its lowest in 2 months. Today's 'squeeze' in Europe had started early in credit and it seems stocks just played catch up when the NFP print hit.
DAX within 20 points of all-time high... but highest close ever
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European credit was being squeezed hard early and the NFP pront was the trigger for equity to join it...
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European bonds were not as excited as stocks at today's NFP...
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and EURUSD roundtripped to where NFP printed...
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Charts: Bloomberg