And Suddenly All That Confidence Is Flying Out Of Markets

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Photo: The Associated Press

ORIGINAL: European shares are trading mostly higher, after some mixed news on earnings and a quiet trading day in Asia.A 33 per cent drop in Deutsche Bank’s first quarter profits weighed on markets initially, and the bank’s stock is off more than 4 per cent. The bank also reported a 12 per cent decline in revenue.

Leading losses was Telecom equipment maker Alcatel-Lucent SA, down 11 per cent after a 12 per cent year-on-year decline in revenues and a worried outlook on continuing strength in Europe and the U.S.

Also in the news, the index of Italian business confidence dropped to its lowest level in more than two years—89.5 down from 91.1 in March, worse than analysts expected. 

UPDATE: In the last few minutes, we got some sour economic data out of Europe, and now markets appear to have lost all of that earlier momentum.

Spain is leading losses, down 1.8 per cent.

Euro area economic confidence fell to 92.8, missing analyst expectations of 94.2, according to Bloomberg. And the more specific data was bad, too:

Last but not least, yields rose in an auction of Italian short term debt, from 1.119 per cent on March 28 to 1.772 per cent today.

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