|Stock market of Brussels (Photo credit: Wikipedia)|
Credit markets - just as in the US - have been warning of a disconnect for two weeks and today's equity dive has more than halved that divergence. European sovereigns are wider by 10-15bps. Europe's VIX is over 2 vols higher at 18.4% (its highest in a month).
European financial stocks dropped by their most in 3 months and European high-yield credit worsened by its most in 3 months. A late-day ramp made things look a little better than they had earlier with a 100 pip rally in EURUSD off earlier lows seemingly providing some help. Read more >>