ZeroHedge – Europe Weakens Again As Investors Seek The Safety Of… Portuguese Stocks! – 10 March 2014

ZeroHedgeEuropean sovereign bond spreads have not batted an eyelid during the recent Russia-Ukraine crisis… and why should they, Draghi will do “whatever it takes.” Even HY credit in Europe is holding up – despite an ugly squeeze wider on Friday (chatter that positioning in very long credit). But with Europe’s VIX above 20, the broad European stock index is now below pre-Putin levels. What is perhaps most stunning is that while investors have piled out of German, Swiss, and French stocks in the last few days, they have backed-up-the-truck in “new normal” safe-haven Portugal. The reason proferred by some – Portugal is further from Ukraine (and less dependent on Russia’s gas) – which of course is the critical swing factor for an economy that remains crushed aside from trade with Germany.

Stocks are back below Putin levels…

Read the full story and see charts at: www.zerohedge.com /link to original article

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