Yesterday morning, when musing on the day's key event namely Yellen's congressional testimony, we dismissed the most recent bout of European bank euphoria which we said "will be brief if not validated by concrete actions, because while central banks have the luxury of jawboning, commercial banks are actually burning through funds - rapidly at that - and don't have the luxury of hoping for the best while doing nothing." This morning DB has wiped out all of yesterday's gain.

As for Yellen's testimony, we said that "she can send stocks reeling with one word out of place" - the word in question being not what she said but what she didn't say, in this case not being dovish enough and thus supportive enough of risk. And the consequence is there for all to see as soon as their trading terminal boots up: everything is crashing (with the exception of China which is on holiday, and Japan which was mercifully closed yesterday). Here are the highlights:

S&P 500 futures down 1.8% to 1814

Stoxx 600 down 3.4% to 304

FTSE 100 down 2.6% to 5525

DAX down 2.9% to 8760

German 10Yr yield down 7bps to 0.18%

MSCI Asia Pacific up 0.1% to 117

Hang Seng down 3.8% to 18546

S&P/ASX 200 up 1% to 4821

US 10-yr yield down 5bps to 1.62%

Dollar Index down 0.42% to 95.49

WTI Crude futures down 2.9% to $26.65

Brent Futures down 1.7% to $30.31

Gold spot up 1.9% to $1,220

Silver spot up 1.5% to $15.50

It all started in Hong Kong where as we reported last night, the Hang Seng Index plunged 3.9%, catching up with the week’s selloff as the market reopened from a holiday, and capping its worst Lunar New Year start since 1994.

http://www.zerohedge.com/news/2016-02-11/markets-around-world-are-crashing-gold-soars