European Crisis Over? Not So Fast

Tyler Durden's picture

As we recently noted, despite the incessant chatter that the worst is behind them and the unending belief that if European politicians repeat a lie often enough it will become truth, the following chart perhaps better than many others shows the sorry state that exists in Europe's core and periphery - no green shoots, no second-derivative shifts, and only the 'Merkel-Draghi' wager holding things together.

 

 

And despite US equity strength, European markets disappointed today with EURUSD back under 1.3000...

 

European stock indices closing red (not holding US equity-driven gains)...

 

and Italian and Spanish bond spreads leaking wider into the close (about 10bps off their intrday tights).

 

 

Source: Bloomberg and AEI