Quietly, while no one was watching, European stocks have been pummeled lower in the last 2 weeks. Since the start of December, Spanish and Italian stock markets are down 6% and the broad-based Bloomberg 500 Index is down 4.75% - its biggest such drop in 6 months - to 2-month lows. With the EUR testing multi-year highs against the USD, and the earnings picture fading dismalling into the dark, it seems all those "believers" in a European recovery (on the basis of some "soft" surveys) have been proved wrong (or early?).
European stocks are at 2-month lows...
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As Earnings hope collapses....
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Led by Spain and Italy...
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as stocks catch down to macro reality?
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Intrestingly, European stocks caught up to the region's improve dmarket-based credit risk perception... but has disconnected lower in recent weeks (as bonds remains under the control of the ECB...)
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Charts: @Not_Jim_Cramer and Bloomberg