Overnight weakness in Asia spilled into Europe and the bloodbath is continuing – especially in the peripheral markets which have until now been invincible in the face of deteriorating fundamentals. Just like US hyper-growth hope, Portugal, Spain, and Italy stock markets have soared this year – among the world's best performers – but are getting monkey-hammered in the last 2 days (down over 5%). Despite more chatter of ECB QE, peripheral bond spreads are also jumping higher (+7bps) as German Bund yields are slumping back below 1.5% – the lowest in 10 months. US futures are ugly too.
European exuberance is fading fast…
and even the unstoppable idiocy of peripheral bond spreads are being bashed wider…
Bunds are ripping loweer in yield…
US Stock futures are not happy either extending yesterday's losses (as Nasdaq hits it 150DMA)
via Zero Hedge http://ift.tt/1kBfHuA Tyler Durden