The latest economy data from the euro zone indicates that "economic green shoots" are not exactly as green as leaders would like. Right now, economic activity is slowing.

European stock markets are lower today, with the French CAC 40 and the German DAX both in negative territory. It is true that the situation has stabilised somewhat, but things are not exactly improving. Going forward, something more impressive will be required if the euro zone is expected to recover.

Spread betting and contracts for differences on ECB rates should consider that they are still steady at 1%. Indeed, 1% is widely thought to be the floor for the European Central Bank, with the euro zone refusing to follow the U.K. and the U.S. in rates approaching 0%.

The non-move was widely expected, and the ECB's rate decision is not likely to have much impact on other markets; it's already been priced in. However, ECB president Jean-Claude Trichet is expected to share the euro zone monetary leadership's view of the economy later today. That speech is likely to have more of an effect on European markets.

Right now, the euro is lower in forex trading, thanks to economic data and to concerns about economic recovery. European stocks are also in retreat today, after starting the 3rd quarter enthusiastically yesterday.

Spread bets and CFDs on the European stock market should consider that things are improving for shares on the Continent. European stocks are logging gains, thanks to renewed optimism that the recession may be coming to a close.

One of the factors encouraging a degree of confidence on the European stock market this morning is the fact that China has reported an increase in manufacturing. This is good news, since it indicates that economic activity is picking up on a global scale.

While recovery from this recession is still likely to take a while, there are hopes that economic contraction will soon stop, and that recovery can begin soon. German retail sales data also helped inspire some confidence in the European stock market.

Spread bets and CFDs on European markets should consider that things are getting interesting right now. The euro zone economy is experiencing negative inflation for the first time as prices drop dramatically.

This economic data is creating an interesting situation for the euro zone leaders. Euro zone leaders have been cautious about their economic stimulus measures, taking small steps and largely avoiding quantitative easing. Even so, the economy is not yet in a state of deflation, reports Action Forex:

The decline in the general price level is not enough to claim that the economy is going into deflation; since the slowdown was due to the declining commodity prices, at the same time there are no clues whether producers were waiting for better prices. However, the decelerating price levels, if continued, may have a destructive impact on the European economy that is already witnessing a deep recession. The decline in prices along with the diminishing purchasing power for individuals is due to the high unemployment rates, which are making the economy very weak.

Some critics point to the current state of negative inflation as proof that euro zone policymakers haven't done enough. Euro zone leaders, on the other hand, insist that they have done plenty, and that time is needed for their measures to take effect.