Markets Are Selling Off After The EU Slashes Its Eurozone Growth Forecast

Euro Protest Frankfurt Germany European Central Bank

Photo: Johannes Simon / Getty

Markets moved up notably during the European trading after the Ifo Institute’s German business confidence reading increased to a 7-month high, beating economists’ expectations.However, the Ifo release was followed by the EU who announced it now projected a recession for the Eurozone.  Specifically, they now see growth in the 17 country bloc shrinking by 0.3 per cent in 2012 versus a previous expectation for 0.5 per cent growth.

Britain’s FTSE 100 is up 0.0%.

Germany’s Dax 30 is down 0.5%.

France’s CAC 40 is down 0.2%.

Spain’s IBEX 35 is down 1.2%.

Italy’s FTSE MIB is down 1.1%.

A bunch of European banks announced quarterly earnings today, including the UK’s RBS and France’s Credit Agricole.  Both banks announced losses that were worse than expected.

Germany’s Commerzbank is also selling off after unexpectedly announcing new plans to raise capital.

U.S. equity futures are pointing to a higher open for the Thursday trading session.

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