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Contagion To Set Alight United Kingdom?.

  • Written by Syndicated Publisher No Comments Comments
    July 19, 2011

    According to the folks over at Zero Hedge, who seem to be able to somehow sniff out these imminent disasters sometimes months in advance have just discovered that the European contagion may well be about to set alight in the UK, starting at Loyds PLC.  This of course would be a disaster of markets – so we’ll see.

    From Zero Hedge;

    Over 3 weeks ago, before Italian treasury spreads blew out by several hundred basis points, and before Italian bank stock trading halts became a daily occurrence, we suggested that the European contagion was shifting to Italy based on Goldman dark pool Sigma X trading. To wit: “Today’s most active names are Banca Monte dei Paschi di Siena, Unicredit and Intesa Sanpaolo. Translation:someone is actively positioning for serious action in Italy shortly.” That someone sure was right, and it is precisely this trifecta of stocks that at last check was halted on the Borsa. Well, based on today’s action at Sigma X, the next, and probably biggest domino may be about to fall: the UK itself, because coming in at position #2, just behind UniCredit, we see Lloyds Banking. And if Lloyds goes, the ones that will follow are Barclays and RBS. At that point, the financial crisis got global.

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    Sigma X Trading Suggests European Contagion May Be Shifting From Italy To The UK | zero hedge.