US financials' stocks are tumbling as 'investor' hopes for a rate-hike (and some dream about better earning potential for banks) drag XLF (Financials ETF) back to Oct 2014 lows. However, as have noted before, it is the message of the credit markets that has been correct all along (and stocks continue to catch down) as today's jobs data (and Glencore asset sales) poke Financials credit spreads to their highest since Oct 2013.
Credit leading the way again...
With Morgan Stanley's CDS rising the most in percentage terms post-FOMC...
And TED Spreads have blown to 3 year highs...
Charts: Bloomberg



