Strong EUR/JPY Carry Trade Funds Rally In Oil, Energy, European, Industrial, Semiconductor And Basic Material Stocks

The chart of FEZ, EUFN, EWP, EWI, EWO, DNH shows a gap open higher,  and then went up higher throughout the day on a continuing run in the EURJPY which closed at 112.96 according to EvilSpeculator, taking other European shares higher.

Nordic shares, GXF, 4%

Sweden, EWD, 5%

Ireland, EIRL,

Spain, EWP, 6%

Italy, EWI, 6%

Austria, EWO, 4%

Emerging Europe, 4%

Poland, PLND, 4%

European Financials, EUFN, 4%

Oil, USO, garnered yen carry investment rising 2.5%; and risk appetite was also strong for

energy producers, XLE, 3%

energy service providers, OIH, 5%

steel producers, SLX, 3%

metal manufacturing, XME, 2.5%

industrials, XLI, 3%

semiconductors, SMH, 4.5%

emerging markets, EEM, 3%

Brazil, EWZ, 3%

Asia excluding Japan, DNH, 2%

and airlines, FAA, 4%

Today was a yen carry trade day: the market broke out after a number of rather bad news stories:  today’s rise was a feat attributable to the funding of euros long and yen short, assisted by no volume; the currency traders had already priced in the news of Greece debt downgrade and the ill-liquidity of the Spanish banking system and simply wanted gains from going long the EUR/JPY and got them, it’s as simple as that.   

Jesse relates: This is one of the big four ‘quad witch’ weeks for US equities.