European morning wrap: Mr Market has suddenly become a bit of a worrywort

Spain's Deputy PM:  Still considering conditions of possible bailout German ZEW September economic sentiment improves to -18.2 from -25.5 in August, better than median forecast of -20.0 Spanish bank's bad loans rise to 9.86% in July. Up from 9.42% in June.  July bad debt load 169.33 bln euros Greek FinMin:  Bailout accord isn't the reason for Greek crisis German ForMin:  This month could be the 'turning point' in crisis Swiss government forecasts UK August CPI +0.5% m/m, +2.5% y/y, in line with Reuters' forecasts European (EU27+EFTA) car sales fell -8.5% in August. Down -6.6% in first eight months through August European stocks have had a torrid morning, led lower by euro zone periphery markets.  Italy's FTSE MIB has seen a hefty -2.25% decline,  Spain's IBEX not doing much better, down -1.8%. Obviously we've got more than our fair share of dodgy geo-political situations to unnerve the markets.  Another negative will have been comments from Spain's Deputy PM.  Her comments suggest Spain is dragging its' feet on asking for a bailout. EUR/USD down at 1.3060 from early 1.3095, having been as low as 1.3047.   EUR/JPY down at 102.70 from early 102.97. While the euro has looked generally soft, the poor aussie has had an even worse morning. AUD/USD down at 1.0420 from the 1.0462 which greeted me, EUR/AUD up at 1.2537 from early 1.2517 having been as high as 1.2553 at one stage (taking out 1.2550 barrier option interest) Dovish RBA minutes released overnight and  concerns surrounding Chinese growth are two factors underminning the once teflon-coated Antipodean currency. EUR/CHF down at 1.2112 from early 1.2138, reflecting pick-up in risk aversion and generally weaker euro. Cable effectively unchanged at 1.6248, EUR/GBP down at .8038 from early .8060.