Submitted by Tyler Durden on 12/02/2011 - 11:46 Belgium France Italy
European stocks gapped impressively higher from a weaker-than-credit close yesterday and credit rallied to catch up with equities until just around the US NFP print. Downgrade rumors and the Republicans legislation threats took the shine off dramatically as EURUSD dropped almost 200pips from its intraday highs and equity and credit markets cracked lower in a hurry into the close (though ending higher on the day). European sovereign bonds were performing very well but also leaked notably wider into the last hour or so (perhaps France and Belgium driven by the Dexia news?). Ending the day under 1.34, EURUSD has retraced more than half the 'bailout' gap higher. EUR-USD basis swaps and FRA-OIS spreads also started to decompress (worsen) again as we noted earlier the ECB's dramatic rise in deposits and emergency loans suggests all is not well and perhaps this was the greatest central-bank-driven opportunity to reduce exposure ever?
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http://www.zerohedge.com/news/ugly-end-european-day
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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