Economic Surprises Improving In The Eurozone, Deteriorating In The US

Sharing is Caring!

via Bespoke

Recently, the Citi Economic Surprise Index for the Eurozone has started to improve while the Citi Economic Surprise Index for the US has slipped into negative territory. As shown in the first chart below, we show the relative surge in Eurozone data surprise versus the US. Historically, that’s had a relatively mixed message for relative equity performance. As shown in the chart below, forward returns are at times correlated and at times uncorrelated to the relative performance of Eurozone versus US equities. But the bottom line is that longer-run, relative economic surprise index performance is basically uncorrelated to forward performance; we show the long-run lack of correlation in the bottom chart below.

US CITI Economic Surprise Index
See also  Severe Economic Desperation Rises Rapidly All Over America As Nearly Half The Nation Cuts Back Spending On Food
Help Support Independent Media, Please Donate or Subscribe:
See also  Eurozone Consumer Confidence hits an All Time Low, data going back to Jan 1983.

Views: 2

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.