Just two hours after the coordinated global central bank intervention signaled the all-clear for risk assets to infinity and beyond and a total solution for European sovereigns and financials, we are sad to deliver the news that all of the impact in equity markets has now been removed. ES has completely retraced the spike as have French banks. The only thing that is still holding better is financials spreads in Europe which are -25bps at 263bps (a lot of which is index skew compression as single-names are less excited).
ES finding resistance at VWAP now
As a reminder, French banks are -9.5% and Spanish banks -5% since the well-thought-through Short-Sale ban on 8/12 - well played.