Gold Spikes As European Election Anxiety Spreads

Stoxx 600 falls 0.5%, hitting session’s low, with FTSE MIB down 1.8% and DAX 1.1% lower.

We're gonna need more "whatever it takes"...

Merkel is under election pressure in Germany as Bild reports German Social Democrats overtook CDU in new Insa poll.

Economic uncertainty is soaring...

and German sovereign risk has spiked to its highest since Brexit this last week...

And DAX is slipping.

  • Stoxx 600 falls 0.5%, hitting session’s low, with FTSE MIB down 1.8% and DAX 1.1% lower. 

And the Stoxx 50 is testing crucial technical support...

  • Banking sector index drops 0.9% after rising as much as 0.5% earlier in session
  • Auto sector index down 1.5%, BofAML downgrades it to underweight from neutral

French election uncertainty has sent OATs to their 'riskiest' to Bunds since Dec 2012...

Italeave looms as election anxiety (and surging euroscepticism) has sent BTPs back over 200bps wide of Bunds...

Draghi set to testify at European Parliament at 3pm local time, critics seek clarity on stimulus end after rise in inflation.

But derisking is evident everywhere with USD/JPY testing 112.00 for the 3rd time...

And safe-haven buying is clear as Gold tops $1230 for the first time since November...

Even as the USD rallies... (EUR weakness)

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