Quietly, while no one was watching, European stocks have been pummeled lower in the last 2 weeks. Since the start of December, Spanish and Italian stock markets are down 6% and the broad-based Bloomberg 500 Index is down 4.75% – its biggest such drop in 6 months – to 2-month lows. With the EUR testing multi-year highs against the USD, and the earnings picture fading dismalling into the dark, it seems all those “believers” in a European recovery (on the basis of some “soft” surveys) have been proved wrong (or early?).
European stocks are at 2-month lows…
As Earnings hope collapses….
Led by Spain and Italy…
as stocks catch down to macro reality?
Intrestingly, European stocks caught up to the region’s improve dmarket-based credit risk perception… but has disconnected lower in recent weeks (as bonds remains under the control of the ECB…)
Charts: @Not_Jim_Cramer and Bloomberg
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/z5ge7IXgNjc/story01.htm Tyler Durden