Nothing like new lows in European PMIs to get the QE-hope party started this morning!
European bulls are begging for more central market planning QE as Eurozone PMI hit new cycle lows. Check out the bloody red charts below:
... And the recent cliff dive in Eurozone PMI numbers:
Meanwhile, the euro is burning on all the easy money speculation. Here's analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning:
"The euro is down another -0.6% vs. USD this morning after falling -1.1% last week with the composite Eurozone PMI hitting a 13 month low of 52.7 in FEB; since the risk range is $1.09-1.13, I expect this party to end at $1.09, and Gold to hold $1150"
Bulls love quantitative easing. They'll accept any justification to send European equities higher, especially if it means admitting that Europe's economy is slowing. Lets put this "bounce" in context:
"The DAX loves Burning Euro, +2.1% on the bounce but still very much in crash mode (-23% from the April 2015 peak when the European economic cycle was peaking); Draghi will have his work cut out for him at the March 10th meeting to break $1.09"
None of this should inspire confidence.
We'd put our money on economic reality (aka growth continuing to slow). Relying on some effervescent hope that un-elected central planning bureaucrats can bailout stalling economies around the world has been a losing bet for some time now.