For USD investors, the collapse in German stocks has crushed returns to the lowest in 2 years. DAX’s collapse this week leaves it closing at Black Monday lows, the lowest since Dec 2014. Perhaps most stunning is German stocks down over 20% since Q€ began…
– Blood On The Streets Of Europe – Stocks Crash By Most In 4 Years, Bond Risk Surges (ZeroHedge, Aug 21, 2015):
Carnage – everywhere. A surging EUR – as CNH carry traders unwind en masse – has led to an unwind across most risky assets in Europe. This week saw EuroStoxx 600 – the broad index – crash almost 6%, its biggest drop since September 2011. Perhaps most stunningly, Germany’s DAX was the biggest loser – collapsing 7.4% on the week. European bonds are are also seeing risk increase dramatically with Portugal and Italy worst (aside from Greece’s blowout). Europe’s VIX topped 30 this week, as US VIX surges.
Worst weeek for European stocks in 4 years..
Led by a complete collapse in DAX…
– DAX Crashes After Germany Warns Greek Bailout “Insufficient” (ZeroHedge, Aug 12, 2015):
With the Greek bailout deal now nearly done, all that stands in the way of disbursal is the Greek parliamnent and a predictably incalcitrant Germany which, according to Bild (citing EU sources) has now determined that the new bailout plan is “insufficient.”
– German Factory Orders Tumble By Most In 9 Months, Spanish Bond Yields Turn Negative (ZeroHedge, April 8, 2015):
Bad news is even better news in Europe. “Core” Germany saw its powerhouse economy suffer the biggest drop in Factory Orders since June (-1.3% YoY) missing expectations for the 2nd month in a row – the first consecutive drop since may 2013 (despite German business confidence rising for the 5th month in a row) as apparently devaluing the EU’s currency is not encouraging business. The result… DAX futures surging, bond yields tumbling and Spanish bond yields to 6 months are now negative..
– European Derivatives Market Breaks… And Futures Surge (ZeroHedge, April 8, 2015):
Because nothing says “liquid and efficient” market like yet another broken market. Just as we saw yesterday afternoon as US equities collapsed into the close, Euronext has broken in the pre-open European markets…
- *EURONEXT SAYS EXPERIENCING SOME TECHNICAL ISSUES
- *EURONEXT DERIVATIVES MKT STATUS – SYSTEMS AFFECTED: CCG ISSUE
- *EURONEXT: CCG NUMBER 10, 11, 12 MAY SEE CONNECTIVITY ISSUE
and sure enough, DAX stock futures surge…
– DAX Is The Most Overbought Since The Peak In 2000 (ZeroHedge, March 24, 2015):
The German DAX stock market index has only been this extended relative to its 200-day moving-average once in history… March 2000 – and that did not end well…
Thank you Mr. Draghi…
– Europe, US Risk Off After Greece Rejects European Ultimatum, Ukraine Peace Talks Falter (ZeroHedge, Feb 9, 2015):
In the absence of any notable developments overnight, the market remains focused on the rapidly moving situation in Greece, which as detailed over the weekend, responded to Europe’s Friday ultimatum very vocally and belligerently, crushing any speculation that Syriza would back down or compromise, and with just days left until the emergency Eurogroup meeting in three days, whispers that a Grexit is imminent grow louder. The only outstanding item is what happens to the EUR and to risk assets: do they rise when the Eurozone kicks out its weakest member, or will they tumble as UBS suggested this morning when it said that “the escalation of tensions between the Greek government and its creditors is so far being shrugged off by investors, an attitude which is overly simplistic and ignores the risk of market dislocations” while Morgan Stanley adds that a Grexit would likely lead to the EURUSD sliding near its all time lows of about 0.90.
– Bill Gross Quits PIMCO, Which He Co-Founded, Joining Janus (ZeroHedge, Sep 26, 2014):
After co-founding PIMCO in 1971, Bill Gross has called it quits…
- *WILLIAM H. GROSS JOINS JANUS CAPITAL
- *JANUS:GROSS TO START MANAGING FUND,RELATED STRATEGIES OCT.6,’14
“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” said Mr. Gross.
Janus stock is +20% on the news. 40% now!)
– Germany’s DAX Halted On Draghi-Driven Dump (Zerohedge, Feb 6, 2014):
No sooner had the ECB statement been released with its disappointing lack of unsterlizied QE or negative rate promises than European stocks mini-flash-crashed. Most notable was Germany’s DAX which collapsed over 200 points only and was promptly halted in the futures markets. Only to magically re-appear after the halt almost unchanged…
– Eurozone debt crisis: Markets dive on Greek referendum (BBC News,Nov. 1, 2011):
US and European markets have fallen following Monday’s announcement of a Greek referendum on the latest aid package to solve its debt crisis.
Eurozone leaders agreed a 50% debt write-off for Greece last week as well as strengthening Europe’s bailout fund.
But the Greek move has cast doubt on whether the deal can go ahead.
New York’s Dow Jones ended the day 2.5% lower, after a mid-afternoon rally on hope that Greek MPs may block the referendum proved short-lived.
One of Mr Papandreou’s MPs, Milena Apostolaki, resigned from the ruling Pasok parliamentary group on Tuesday, leaving the government with a two-seat majority in parliament.
Six other party members have called for Mr Papandreou to resign, according to the state news agency.
There are doubts whether the government will last long enough to hold the referendum, pencilled in for January.
A confidence vote is due to take place in the Greek parliament on Friday.
Earlier in the day, London’s FTSE 100 had ended trading down 2.2%, while the Frankfurt Dax fell 5% and the Paris Cac 40 some 5.4%.
Shares in French banks saw the biggest falls, with Societe Generale down 16.2%, BNP Paribas 13.1% and Credit Agricole 12.5%.
Other European banks also fared badly for the second day, with Germany’s Commerzbank and Deutsche Bank and the UK’s Barclays and Royal Bank of Scotland all 8% to 10% lower.
In the US, Bank of America fell 6.3%, while Morgan Stanley was down 8% at the close of trading.
DOW JONES -4,21%
S&P 500 -4,36%
NASDAQ COMPOSITE -4,68%
NASDAQ 100 -4,70%
– Global Stocks Plunge as 10-Year Treasury Yield Falls to Record; Gold Rises (Bloomberg, August 18, 2011):
Stocks sank while Treasuries rallied, pushing 10-year yields to a record low, amid growing concern the economy is slowing and speculation that European banks lack sufficient capital. Gold climbed to a record, while oil led commodities lower.
The MSCI All-Country World Index of stocks lost 4.2 percent at 10:22 a.m. in New York as the Standard & Poor’s 500 Index tumbled 4.3 percent and Germany’s DAX Index plunged as much as 7 percent, the most on a closing basis since 2008. Ten-year Treasury note yields slid as much as 19 basis points to 1.97 percent as rates on similar-maturity Canadian and British debt also reached all-time lows. The dollar appreciated versus 14 of 16 major peers, climbing 1 percent to $1.4286 per euro. Gold futures rallied as much as 2 percent to $1,829.70 an ounce, while oil slid 5.2 percent.
– U.S. Stocks Drop Sharply, Following Europe (New York Times, August 18, 2011):
Stocks on Wall Street fell sharply on Thursday, following the trend set in Asia and Europe as more disappointing economic data emerged and concerns again focused on the financial sector.
The Standard & Poor’s 500-stock index was down more than 4 percent. The Dow Jones industrial average was down about 450 points, or 4 percent, and the Nasdaq was down nearly 5 percent. Major indexes in Europe were down 3 to 5 percent.
The yield on the Treasury’s 10-year note fell to a record low as investors turned to the safety of fixed-income securities.