• German April flash manufacturing PMI 46.3, down from March final read of 48.4 and some way from Reuter’s median forecast of 49.0. Fastest contraction since July 2009. Something of a shocker!!
  • Eurozone April flash composite PMI 47.4, down from 49.1 in March, some way weaker than Reuter’s median forecast of 49.3
  • Reports ECB checking Spanish bond prices (we didn’t have any confirmation of actual buying)
  • Dutch Dep Foreign Affairs minister Knapen: Elections seem inevitable
  • Dutch/German 10 year govt bond yield spread widens, presently 72 bps from 61 first thing
  • French April manufacturing industry morale 95, down from upwardly revised 98 in March (prev 96)
  • Dutch April business confidence -3.3, down from -2.6 in March
  • Italy April consumer morale index 89.0, demonstrably lower than March read of 96.3 and Reuter’s median forecast of 96.5. Lowest read since series began in January 1996
  • Spain central bank: Economy contracted -0.4% q/q, -0.5% y/y. Spain’s economy faces downside risks
  • German auction
  • Italian Dep FinMin: Euro countries including Italy in delicate spot (one way of putting it I guess)
  • Dutch crisis puts eurozone debt rescue plans at risk - The Telegraph

We don’t need no stinkin risk!!

Lots off risk aversion about this morning. European stocks sharply lower, oil lower, gold lower and US treasury yields lower (benchmark 10 year at 1.9261% from early 1.9629%)

We had a run of really crappy European economic data this morning (see above) which helped heighten worries. The breakdown of budgetary talks and likely general election in Holland isn’t helping. You can probably add the likelihood of Hollande being the next French president onto the negative side of the ledger as well.

EUR/USD down at 1.3150 from early 1.3195 having been as low as 1.3134 so far. The move lower accelerated as stops were tripped through 1.3175. More sell stops now seen through 1.3130.

USD/JPY down at 81.00 from early 81.30 having been as low as 80.97 after sell stops tripped through 81.10. EUR/JPY down at 106.55 from early 107.30. Lower US treasury yields/general risk aversion strengthening yen this morning.

Cable down at 1.6095 from early 1.6125.