Swiss shares post biggest one-day decline since 1989 on Swiss Franc news ~ link ~
One trader described the central bank's move as "carnage", while Swatch Chief Executive Nick Hayek called the franc's surge in value against the euro an economic "tsunami" for Switzerland, which sells more than 40 percent of its exports to Europe.
Stocks including watchmaker Swatch, luxury goods firm Richemont and cement maker Holcim slumped by between 11 and more than 16 percent as the franc surged against the euro.
Swiss Franc soars as the Swiss abandon their Euro Cap ~ link ~
Turmoil: Gold is Surging as Bond Yields, Crude Oil, and Stocks are all Crashing ~ link ~
The kneejerks are over and now the fallout. US equity markets have tumbled back to yesterday's lows (and beyond), US Treasury yields are in total free-fall (down another 10bps, led by 7Y and 10Y yields crashing). Crude prices have reversed the entire post-SNB surge and is heading back to yeaterday's pre-ramp levels... Gold is pushing notably higher at $1265
Market Chaos: Gold rises sharply as the Swiss Franc surges 30% in just 13 minutes ~ link ~ Gold and Swiss Francs are the thing to be in, NOT the Euro or the Dollar, according to the market!!! Stirling
Carnage: Swiss Franc Soars and Macro Hedge Funds Crushed ~ link ~
Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more.
What happened next was truly shock and awe as algo after algo saw their EURCHF 1.1999 stops hit, and moments thereafter the EURCHF pair crashed to less then 0.75, margining out virtually every single long EURCHF position, before finally rebounding to a level just above 1.00, which is where it was trading just before the SNB instituted the currency floor over three years ago.