Ugly End To The European Day

European stocks gapped impressively higher from a weaker-than-credit close yesterday and credit rallied to catch up with equities until just around the US NFP print. Downgrade rumors and the Republicans legislation threats took the shine off dramatically as EURUSD dropped almost 200pips from its intraday highs and equity and credit markets cracked lower in a hurry into the close (though ending higher on the day). European sovereign bonds were performing very well but also leaked notably

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