Relatively slow day in Europe but the selling theme continued with the worst 5 days in 2 months in the broad equity markets and sovereign bond spreads continuing to push wider (+20bps on the week). Corporate and financial credit spreads widened significantly again - now 10% worse than a week ago. So it seems the rotation to European 'value' drew just enough greater fools in to mark a short-term top. Europe's VIX topped 20.5%, its highest in 6 weeks. And on a final 'bright' note, the Turkish stock index is down 32% in the last 3 months in USD terms (and Greek bonds continued to lose faith).
Broad European stocks are down the most in 2 months in the last few days...
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Credit leading stocks lower...
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as Sovereigns push higher in yield and spread...
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Charts: Bloomberg