European bank stocks are down over 6% in the last 3 days to 5 month lows – the biggest such drop in 13 months. The combination of Draghi’s “no QE”, Austrian bank contagion concerns, and rumors of German banks about to be ‘BNP’d by US regulators has removed all the exuberant recovery chatter (confirmed by economic data itself collapsing too). Remember all those oh-so-positive PMIs? European peripheral bond spreads surged around 10bps and individual stock markets plunged (Portugal -3% today, Italy -2.5%, Spain -1.8%)
