“Not sure if you saw this EU confidence/sentiment report. Not surprising to see its recent weakness which appears to be increasing.

Eoin Treacy's view Thank you for this illustrative report from Europa.eu, the EU's online mouthpiece. The Eurozone currently represents the epicentre of risk perceptions among investors. I agree the indicator looks like it will continue to deteriorate in the absence of a significant catalyst.

Considering the extent of the crisis, rather than becoming increasingly focused on the problem, we can probably gain greater clarity by assessing potential solutions. The Spanish banking sector is broke. It needs recapitalisation. Spain 10-year spreads at 500 basis points over Bunds are unsustainable. Pressure on Germany to allow a direct recapitalisation of the Spanish banking sector is rising. Such an event would likely have a positive effect on markets.