GOLD AND SILVER NEWS

Currency Wars - Russia Officially  

Adds 19.5 Tonnes of Gold Reserves 

in October Alone

(SOURCE:http://www.zerohedge.com/news/currency-wars-russia-officially-adds-195-tonnes-gold-reserves-october-alone)

Hungary 'Junked' By Moody's

(SOURCE:http://www.zerohedge.com/news/hungary-junked-moodys)

European Equity And Credit  

Diverging As Sovereigns Implode

Reality Sovereigns

European sovereign credit curves are bear flattening (inverting wider) in almost all cases as short-dated yields breaks to new records in several names. At the same time, European credit is breaking to new lows in Corporates and financials with Subordinated financials underperforming. Somewhat strangely - though not exactly surprising given the market's behavior in the last few weeks - European equities are holding up as they ignore the reality priced into credit. It seems equities see the light at the end of the tunnel, but credit knows its an oncoming train. US markets are in sync with the broad risk-asset basket (CONTEXT) for now but correlations are tending to be much lower than on average so far.