Traders in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters

European stocks clawed back territory after the euro declined against the dollar following the American GDP data release this morning.

Once again, Bloomberg News gets it wrong: this morning’s headline attributed the earlier decline to sinking oil prices.

In fact, as Asia Unhedged reported earlier this morning, sinking Italian bank stocks led the decline. Banks and Insurers together account for 53 points of loss on the Bloomberg 500 Index of European stocks, while the energy sector accounted for only 38 points.