The Sell-off Is Spreading: Markets Now In Triple-Digit Loss Territory; UBS CIO Warns Of Japanese “Abegeddon” Scenario!!! DOW -200!!! Dow Jones Drops Under 15,000!!!

Markets Around The World Getting Smoked — Dow On The Verge Of Falling Below 15,000

Markets across Europe just closed at their lowest levels of the day.


The London FTSE 100 fell 2.1%, the French CAC 40 fell 1.9%, the German DAX lost 1.2%, the Spanish IBEX 35  retreated 0.9% and the Italian FTSE MIB fell 1.0%.

European markets are now trading at six-week lows.

Meanwhile, in the United States, the Dow Jones Industrial Average is down 1.2% (off 180 points), and is now trading at 14,991.

The S&P 500 is down 1.1%, and the NASDAQ is 1.0% lower. All three are trading at their lowest levels of the day.

The S&P 500 is trading around 1617 this morning, 4.1% off its peak level of 1687 turned in on May 22.

Markets Now In Triple-Digit Loss Territory

After this morning’s economic data releases.

The gold trade is just not working

UBS CIO Warns Of Japanese “Abegeddon” Scenario

Last night’s over-promised and under-delivered ‘third arrow’ from Abe appears to have solidified market opinions about the chances of Abe slaying his deflation-monster nemesis. UBS’ CIO Alex Friedman fears that Japan may face a fearsome stagflation – where accelerating inflation in asset prices is not met by higher growth rates – a scenario he calls “Abegeddon.” In an “Abegeddon” scenario, Friedman said “investors may grow increasingly concerned about the sustainability of Japanese debt levels that could lead to a ‘stampede’ out of government bonds.” With Nikkei 225 futures having faded their European morning bounce and pressuring back towards the 20% ‘bear market’ correction levels once again, it seems the ‘stampede’ is out of growth-expectation-driven equities as JGBs are bid for now. That bid (no matter how hard the BoJ tries) is unlikely to last if the doubt grows as Japan’s debt-to-GDP would rise above 300% (from 226% currently) and the 10Y JGB yield could approach 5%!

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zerohedge‏@zerohedge1 min 

Dow Jones Drops Under 15,000

Dow 15,000 hats off.

 DOW -199!!!


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