Economic confidence in Europe took a nose dive. The European Commission reported its economic sentiment indicator fell in April to 92.8 from a reading of 94.5 the previous month. MarketWatch says that the consensus estimate was 94.2. The EC survey also showed that the consumer confidence index fell to minus 19.9 from minus 19.1.
The news is more confirmation that the economic and financial situation in the region is deteriorating. It comes one day after the UK government announced that it has been in recession.
Bond yields on sovereign debt continue to rise because of the concerns. There continues to fuel worry that the rates Spain, and perhaps Italy, must pay, are unsustainable as each country wrestles with budget deficits.