European shares touched a 10-month high on Friday on optimism for a global economic recovery and with Nokia and results from U.S. bellwethers boosting the technology sector.

“It looks like things are finally turning around,” said a friend at Saturday night’s dinner. “Not at all… ” we replied. Paul Krugman says the world “avoided a second Great Depression.” He’s wrong too.

Oil rose more than $2 to hit a one-month high near $72 on Monday as positive Chinese economic data and firmer equities bolstered hopes of economic recovery and higher energy demand.

Dollar continues to slide…  US GDP contracts but not as fast…  Nordic currencies outperform…  Japanese yen continues to fall… And Now… Today’s Pfennig!

Bernanke sticks to the script…  Pound sterling comes under pressure…  China starts shopping for assets…  BRIC MarketSafe lights up the phones… And Now… Today’s Pfennig!

Or you could take heed of Bill Clinton’s former labor secretary Robert Reich. He reckons we’re not in for a “U” or a “V” or an “L” shaped recovery but an “X”. This from underground investor Jon Herring, writing for Investor’s Daily Edge:

One significant step toward putting the US economy back on its feet would be to for the government to treat borrowers like adults. It’s a novel idea, huh? And one that’s likely to fall on deaf ears up on Capitol Hill. But we firmly believe here at Notes that it is a prerequisite of any real economic recovery in the US.

Oil dropped well over a dollar to below $62 a barrel on Wednesday, placing it on course for a sixth consecutive fall and the longest losing streak since mid-December, after U.S. data showed a big rise in fuel stocks.

Oil prices fell more than 1 percent to $63 a barrel today, Tuesday, as growing uncertainty over an economic recovery spurred investor risk aversion.  A member of U.S. President Barack Obama’s economic advisory panel said the world’s top oil consumer should plan to possibly provide a second round of stimulus funds to prop up the economy, implying that recovery is still far off.

U.S. stocks fell today, Monday, as investors worried about the potential strength and timing of an economic recovery, sending oil prices and energy shares lower.