Europe Tag

The Market Continues to Vote for Japan Over Europe

24 Jun, by Bryce Coward, CFA in Markets

Despite Japanese stocks outperforming European stocks by 7% YTD and 14% over the last year, the investment community has continued to basically ignore Japan in the commentary we read. But, for those who have been overweight Japan it has been a good ride. The MSCI...

It’s Japan, not Europe, that Continues to Lead in 2015

03 Jun, by Bryce Coward, CFA in Markets

Despite the popular news media focusing all their attention on European reflation, Draghi's QE, Grexit or no Grexit, etc, the real story for investors remains in the seemingly forgotten Japan. Indeed, year to date Japan has outperformed Europe by more than 7% in USD terms...

Decline in Sentix Euro Break-Up Survey

27 May, by Knowledge Leaders Team in News

The 1,000 or so participants in Sentix's monthly survey of whether or not a country will leave the euro collectively decided that the risk has subsided (slightly): The decline to 41% (from nearly 50% in April) was mostly attributable to risks related to Greece's membership in...

Is Volatility Making a Comeback in Europe?

21 Apr, by Knowledge Leaders Team in Markets

Having fallen from the recent highs earlier this year, various metrics of volatility in Europe have risen abruptly in the last few days– especially when viewed in the context of a rather subdued VIX (a measure of expected market volatility conveyed by S&P 500 options...

You’re Not Imagining It.

11 Mar, by Knowledge Leaders Team in Markets

The recent (more than 10% QoQ) slide in the euro is a two-standard deviation event, the likes of which we have not seen since 2010. And, as we can see in the chart above, the only time the euro has declined more versus the USD...

Sentix Euro Break Up Index Remains Elevated

03 Mar, by Knowledge Leaders Team in Markets

The odds of a Eurozone break-up remained unchanged at 38% in the most recent Sentix survey, conducted over the last three days of February– a level not seen consistently since 2012 and up considerably from last July’s 7% reading....

Rise in Spanish CDS Outpaces Greece

25 Feb, by Knowledge Leaders Team in Markets

Unsurprisingly, the cost of insurance against Greek default (as evidenced by 10-year credit default swaps) has risen since the beginning of the year....

Unimpressive Manufacturing PMI Results Out of Europe

02 Feb, by Knowledge Leaders Team in Markets

Markit’s PMI Manufacturing survey data released today showed little change in euro area countries’ headline readings, as most continued to hover around the all-important 50 level: The largest monthly improvement was in France (~2 points) while Ireland’s survey fell the most (~2 points), and no...

Europe Flash PMI Better, Not Fabulous

16 Dec, by Knowledge Leaders Team in Uncategorized

While today’s better than expected rise in the flash PMI indicator (black line) for the euro zone is a welcome surprise, it would seem that it will take quite a bit more improvement before we can reasonably expect substantial progress in the recovery of important...

Euro Falls to Lowest Level Since August 2012

06 Nov, by Knowledge Leaders Team in Uncategorized

Circling back to a topic we have addressed previously (here and here), today’s plunge in the EUR/USD exchange rate puts it back on track towards syncing up with the interest rate differential between corresponding spreads: Having narrowed the gap that developed late last year, how...

Retail PMI Offers Little Consolation in the Wake of Disappointing Retail Sales

06 Nov, by Knowledge Leaders Team in Uncategorized

Following yesterday’s rather disappointing retail sales data release, Markit’s Retail PMI data (released today) were not very inspiring either: While Germany managed to register marginal growth, the rest of the region’s major economies remain below 50, indicating continued contraction: Employment fell for the first time...