Friday, January 16, 2015

Swiss Stocks Slump For Worst Week Since Lehman, Bond Yields Negative To 12 Years

First the good news... European Stocks (ex Greece and Switzerland) exploded higher this weekwith 'great' nations like Portugal (up over 7%) and Italy (up over 5.5%) and Germany's ADX over 10,000 to record highs. EU bond spreads compressed notably (Spain/Italy down 20bps or so on the week) andEURUSD crashed below 1.15... all on hopes that the SNB decision means Moar-Massive ECB QE comes next week (not priced in). But the bad news... Swiss stocks collapsed-er again today for the worst week since Lehman. Swiss bond yields are negative to 12 year maturity and EURCHF is back below par at 0.9820...

European bonds and stocks are loving it... (buy the hope, sell the news next week?)

Swiss Yield Curve is negative to 12 years...

One last thing... Gold (in EUR) vs EURCHF...

Charts: Bloomberg

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