The European Market Rally Has Collapsed After PMI Data Confirms That The Economy Is Doing Horrible

Sunset in Granada, Spain

Photo: Nicholas Carlson

Well, early this morning European markets were actually doing well, with several of them up in the tune of 1%.No more.

European PMI reports came in horrible across the board, with especially bad numbers in Spain and Italy.

As such, the rally is gone.

Spain has fallen over 1%.

Italy is basically flat. Italy is now down 1.5%.

Here’s an intraday chart of Italy’s FTSE MIB index.

chart

Spanish government yields are ticking up, although they remain well below 6%, and 5.83%.

Conversely, short-term German bonds are seeing record low yields, as the flight to safety continues.

Bottom line: A rally has vanished due to horrible numbers across the board.

Time for a growth pact!

Click here to see more about the dismal European economic numbers >

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