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…

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

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And DAX is slipping.

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

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    And the Stoxx 50 is testing crucial technical support…

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  • 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…

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

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    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…

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

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    Even as the USD rallies… (EUR weakness)

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