European financials dropped for the 12th day in a row today on heavy volume
with its biggest 5-day drop in six months and plunging back to their worst
levels in over five months (just 5% off last November's swing lows which would
take us back to March 2009 lows). European equity and credit markets are all
negative now YTD having given up all their gains and heading back to pre-LTRO
levels. Sovereigns continue to bleed wider - especially Spain and Italy, with
the former getting closer to the 450bps LCH Margin Hike level by the day.
Spanish bond spreads are 165bps wider year-to-date - well done Draghi - and
while Italy and Portugal are still tighter on the year, they have decompressed
significantly in the last few weeks as we also note the all-saving EFSF is also
a dramatic 14bps wider on the year. Europe's VIX jumped even higher near 35% -
remaining very high relative to US VIX.
European equity and credit markets red YTD...
And European financials are in freefall...
as are European sovereigns...
and VIX has exploded...
Charts: Bloomberg
European equity and credit markets red YTD...
And European financials are in freefall...
as are European sovereigns...
and VIX has exploded...
Charts: Bloomberg
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