As early as last week, we kind of new Thursday would be problematic in Europe. It turns out the main problem we were looking to saw some other problems pop up first.
Again Unicredit was destroyed in trading thus far today, even halted 4 times thus far and down 15% on the day! Several notable big EU banks were down 5%+ including DB. As predicted weeks ago, the Euro will trade under $1.30, it did one better and broke $1.2850 which hasn't been seen since September... of 2010!
Yesterday mentioned that financial credit was acting bad, today the stocks-CREDIT LEADS EQUITIES!
Italian BTP's are over the red line 7% yield or red flag, once again today. Nearly all sovereign debt is approaching the widest spreads seen in some time.
Now for the French Auction...
The French auction missed their total allotment of debt, the worst internal seems to be the bid to cover which hit Oct. 2010 lows, the BTC is the amount of bids received vs. those accepted.
It's not the news, it's the reaction to the news! And on that note, the Euro moved to new lows after the French auction (currently $1.2803).
Hungary had an auction today of 1 year bills, several weeks after a totally failed 3 year auction. The rate? 9.96% on 1 year paper! Hungary is moving closer to all out default and they will drag Austria down with them. More on Hungary in another post as I have a sold connection and even speak some Hungarian.
In the US Initial Claims came in below consensus, of course t took the seasonal adjustment to make that happen and as usual, they WILL be revised higher.
As an aside, the Euro has traded below $1.28 while I've been writing this!
5 years ago
No comments:
Post a Comment