Silver as an investment

Futures Euphoria Deflated By Latest Batch Of Ugly European News: Germany Can’t Exclude “Technical Recession”

Be prepared for the next great transfer of wealth. Buy physical silver and storable food. / by Tyler Durden / 10/14/2014 06:47 -0400

So far the overnight session has been a mirror image of Monday’s, when futures languished at the lows only to ramp higher as soon as Europe started BTFD. Today, on the other hand, we had a rather amusing surge in the AUDJPY as several central banks were getting “liquidity rebates” from the CME to push the global carry-fueled risk complex higher, only to see their efforts crash and burn as Europe’s key economic events hit. First, it was the Eurozone Industrial Production, which confirmed that the triple dip is well and here, when it printed -1.8%, below the expected -1.6%, and far below last month’s 1.0%. This comes in the month when German IP plunged most since 2009, confirming that this time it’s different, and it is Germany that is leading Europe’s collapse into the Keynesian abyss not the periphery. And speaking of Germany, at the same time Europe’s former growth dynamo released an October ZEW survey of -3.6%, the 10th consecutive decline and well below the 0.0% expected: first negative print since late 2012!

Just as bad,the ZEW current condition print of 3.2, is once again below the 10 year average as Bloomberg notes:

The cherry on top was Zew’s Fuest saying he “can’t exclude a technical recession in Germany” which in turn led to another record low in Bund yields, a slide in the Dax to fresh 1 year lows, and a break in the carry-trading central banks’ concentration asthe US futures ramps was almost entirely undone.

In other news, Greek bonds are blowing out to levels not seen since May, crossing 7%, on the previously noted concerns the European Court of Justice could further defang the OMT, in the process unwinding 2 years of “whatever it takes”iness.

Finally, with earnings season now well underway, the first company to report today did so with a whimper when JP Morgan pre-released numbers, showing a miss on EPS (USD 1.36 vs. Exp. USD 1.39), even thought non-GAAP (yes, non-GAAP) revenues fared better than expected.


Thanks to BrotherJohnF