More Market Mismatch

Under the headline of Euro-Zone Business Activity Shinks, the WSJ:
Business activity in the euro zone continued to shrink in July and new orders plunged, suggesting the 17-nation economy is heading for recession and any recovery is a distant prospect.
German private-sector activity fell at its steepest rate in more than three years, a sign that Europe's debt crisis is taking its toll on the region's biggest economy and main source of financial support.
The final composite purchasing managers' index for the euro zone was 46.5 in July from 46.4 in June, Markit Economics said Friday. That means activity shrank markedly month-to-month, but at a slightly slower pace than the previous month. A reading below 50 indicates contraction.

But look at the chart during the European session:

 Stocks are rebounding after yesterday's losses. Meanwhile, Bill Gross of Pimco says that the "death" of stocks is "imminent". But Bernanke and Draghi have created such an air of no risk that they have constructed another bubble in equities. There is no longer any perception of risk any more. This is precisely the stuff that bubbles are made of. It is the very definition of a bubble! Central bankers seems to be good at only one thing -- building bubbles! And creating the resulting crises!

U.S. jobs report to be released in a few hours!