US Contraction Sends Europe Lower, US Higher
January 30, 2013 - 10:04am
While US equity futures knee-jerked lower on the dismal reality of this morning's GDP print, that dip was rapidly bought pushing equities up near their highs as the day-session opened. However, it appears US gains are Europe's losses as Spanish (and even more so Italian) stocks are plunging today. From Monti Paschi shenanigans to Fiat's dividend (and comments on ongoing EU uncertainty) and from Saipem's slashing their outlook to Seat's rating downgrade - the chart below suggests this is more than just 'fundamental' as Italy's MIB syncs up perfectly with Spain's IBEX and they both start to fall. Spanish and Italian bond markets are unreactive as EUR strengthens... but we haven't seen European stocks and US stocks decouple to this extent this year so far... is the flow becoming fragmented? US... and Europe... and the first time we see all risk-assets decouple this ye...
Continue reading this article »
Share This Article: