Europe Closes Week Green Despite Biggest Confidence Miss In 17 Months

EU confidence rose to its highest since Q3 2011 but missed expectations by the most in 17 months and remains notably divergent from the near-all-time-highs in EU stocks. Of course, that doesn't matter, or in fact only juices moar money into the EU - even as FX movements drive EU corporates to suffer (see Adidas). Spanish and Italian equity indices rose the most on the week but a look at the charts shows the entire gain was instantaneous on the Bernanke news with selling into and after that squeeze. EU Sovereign spreads leaked lower all week with a blip higher post-Bernanke quickly dissolving back. Italian spreads end -26bps - because all is so calm there... EURUSD is holding around 1.3550 (+250 pips on the week), the strongest weekly close since February.

EU confidence missed expectations by the most in 17 months...

but - aside from the nervous Greeks - stocks were up on the week.. though note the selling pressure pre- and post- the Bernanke bounce...

Charts: Bloomberg