Euro Crisis Returns With A Bang: Stocks Crash In Frenzied Liquidation Panic

And there it went...

To summarize:

  • Italian 2Y Yield biggest spike ever

  • Italian risk curve inverted

  • Italian 'redenomination risk' record high

  • Spanish 2Y bond yields spike to 2Y highs

  • Spanish 'redenomination risk' record high

  • EU banks crash 11% in last 4 days to 18-month lows

  • US banks plunge 4% to 6-month lows

  • VIX back above 200DMA

  • US 5Y Treasury yields plunges over 18bps - most since March 2009

  • US 30Y Yield back below 3.00% - lowest in 7 weeks

  • Dollar Index spiked to 6-month highs

Italian capital markets collapsed today.

The risk curve inverted...

 

Meanwhile, if you're interested in some insane speculation - how about the 5x-levered inverse BTP ETF...

 

European Banks contagion...

Italian banks are in freefall...

 

Deutsche Bank closed with a single-digit share price for the first time since it asked for a bailout from the German government...

 

The biggest US banks are under severe pressure today with Goldman now down 18% from the March peaks...

This is Goldman Sachs' and Citi's worst start to a year since 2011.

Bank weakness weighed on The Dow (down 2% at the lows) but all major US equity indices suffered...

Did we get a visit from the Plunge Protection Team into the US close today?

 

Nasdaq futures were excited yesterday but gave all that back today...

 

The Dow is back in the red for 2018 and S&P back to almost unchanged...

 

S&P tumbled through its 100DMA and tested its 50DMA...

 

Dow broke below its 100DMA and 50DMA...

 

VIX broke above its 200DMA...

 

FANG stocks closed at the lows of the day but it was not a bloodbath there...

 

Credit markets were crushed today...

 

Treasury yields plunged back to stocks post-Feb crisis...

 

Investor panic-bid Treasury bonds today - sending yields down 13-18bps across the curve...

 

This was the biggest daily collapse in 5Y yields since Brexit.

 

30Y Yield is back below 3.00% to its lowest level in almost 4 months...

 

Once again the 3.20% range marked significant resistance...

 

We wonder what this chart of record short aggregate Treasury speculative positioning will look like next week...

 

The Dollar extended yesterday's gains as EUR tumbled further... The Dollar is now at 6-month highs.

 

EURUSD plunged...

 

Cryptos were bid today as Europe fell apart, ramping Bitcoin back to unchanged from Friday's close...

 

Despite the dollar strength of the last two days, gold clung to unchanged since Friday, even as crude crumbled...

 

Oil prices tumbled further today...

 

Finally, we note that the odds of The Fed hiking rates 3 more times in 2018 have collapsed...

 

Bonus Chart: Elon is having a bad day as TSLA Bonds collapse to a record low close...

Comments

D.r. Funk Tue, 05/29/2018 - 16:03 Permalink

THE

demise: the time when something ends

PROCEEDS

========================
tricks&antics since the crack, as we fucking held, steadfast to,
the hole that was punched, following, end, game,
NO. RECORD. HIGHS. 4. MONTH. MARK.

 

Pure Evil Squid Viscous Tue, 05/29/2018 - 18:40 Permalink

Amidst all the fun it looks as if Brussels performed a bloodless coup d'état of the newly elected Italian government.

The Italian voters will not be allowed to choose their government and Italia will continue to have elections until Brussels gets the government it wants.

Do you think the EU is just going to dump billions into Italy and then turn around and just watch as Italy walks away?

They'll do to Italy just what they did to Greece.

If Germany still tank divisions they would be rolling now as we speak.

In reply to by Squid Viscous

Snaffew TheRideNeverEnds Tue, 05/29/2018 - 19:50 Permalink

FB?  may as well buy aapl and ge and good year.  Give me a break...FB is a dying commodity....gold is only owned by 0.5 percent of the market...30-40 years ago it was 5 percent of the average portfolio.  If it gets to half of that---2.5 percent, it will be $6k/oz.  Gold will come back along with silver.  You will look like a fool for laughing at this gift horse in the mouth.

In reply to by TheRideNeverEnds

lester1 Tue, 05/29/2018 - 16:04 Permalink

As soon as Deutsche Bank collapses and their derivatives blow up, there's going to be a massive scramble for liquidity. Toxic mal Investments like Tesla and Bitcoin will wither and die.  

 

 

Dilluminati lester1 Tue, 05/29/2018 - 16:43 Permalink

^ this is true but my thoughts are a smaller bank in Spain, Portugal, Italy.. something to stand as a warning to prevent DB from going under.. and then Germany says: hooray for me.. screw you.. and the real game gets on.. but yes there will be a scramble here for cash fast enough: too many debts chasing too few dollars

And DB will be like CHK short at your own peril..

shorts will save it by drying up the float..

yawn

In reply to by lester1

Traderone Tue, 05/29/2018 - 16:07 Permalink

Nice little short covering rally into the close though, or maybe it was the dastardly mythical PPT saving the day for the 'hilarious' markets? nah, it was short covering.

PeeramidIdeologies Tue, 05/29/2018 - 16:08 Permalink

You know Tylers, this could be a shinning moment for the problem solving prowess of free-market capitalism. 

And maybe you guys were just doing your due diligence... 

Or maybe it was something entirely different. 

What do you want it to be? 

 

BTC 35cnRoNNruqdJWviYpgbahJUD6ePP7Pxaj

ChanceIs Tue, 05/29/2018 - 16:12 Permalink

Of course the EU markets crashed.  We learned from the Tommy Robinson matter that the EU is now a lawless Dhimmitude. 

Sahih International

8:69 So consume what you have taken of war booty [as being] lawful and good, and fear Allah . Indeed, Allah is Forgiving and Merciful.

8:74 But those who have believed and emigrated and fought in the cause of Allah and those who gave shelter and aided - it is they who are the believers, truly. For them is forgiveness and noble provision.