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Takeaway: Italian equities were among the big winners in European markets today but Europe is still slowing and Italy is still crashing.

European Equities: Today's Pop Doesn't Buck The Terrible Trend - Europe Japan cartoon 04.04.2016

Investors navel-gazing at the pop in European equities today shouldn't get too excited.

Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers earlier today:

"Big mean reversion move higher this morning for European Equities (which got hammered again last week); Italian stocks leading +1.99% on the MIB Index (after falling another -3.8% last week to -19% YTD); that’s helping US Equity futures, but #EuropeSlowing is not (yet) the latest bull case for US stocks."

 

Take a look at the chart below of select European equity markets and the respective drawdowns from the 52-week highs in the highlighted column.

Bottom Line: Italian and Spanish equities are still crashing...

Click image to enlarge.

European Equities: Today's Pop Doesn't Buck The Terrible Trend - european equities 6 7