The EuroStoxx 50 (Europe's 'Dow') fell over 1% today - not 'huge' but this is the *largest drop in over 6 weeks in the key index*. While much has been made of the recent (good) performance of peripheral nation stocks and bonds (and Japanese buyers dominate) today marked a notable shift. Record bad debt in Spanish banks, political uncertainty in Italy, and a rise in fringe German political parties weighed on peripheral banks and sovereign bonds (which by now have become one and the same symbiotically) - Spain -2%, *Italy -2.5% (biggest drop in 2 months)*. Greek stocks and bonds also slid notably (ASE -3% and GGBs down most in 6 weeks) as they deal with their own political drama. *It appears the ongoing US Treasury sell-off and capital reduction from around the world is weighing on even the most momo assets now.* Credit markets are broadly under-performing with financials leading the way.The momo looks broken...
and equity weakness was widespread...
with credit markets flashing warning signals...
Charts: Bloomberg Reported by Zero Hedge 19 hours ago.