A Closer Look At European #GrowthSlowing

Takeaway: European equities continue to fall as the #GrowthSlowing data continues to roll in.

A Closer Look At European #GrowthSlowing - economic indicators cartoon 02.24.2016

 

Below is analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier today: 

 

"One way to keep US Equity Beta Up = Dollar Down (on the week); but how does that continue (from here)? With GBP/USD signaling immediate-term TRADE overbought at $1.34 and US economic growth (Q2 GDP) not tracking to recession (our Q2 predictive tracking algo currently has 1.5-1.8% y/y)?

 

The other side of the FX (and relative economic slowing) TREND looks like Euro Down (vs. Dollar Up) to me; EUR/USD top-end of the risk range = $1.12, and as European #GrowthSlowing continues I’m looking for a re-test of $1.05; French stocks down -0.8% have the CAC40 out of “crash” mode at -17% from last year’s high, but still bearish TREND @Hedgeye."

 

Take a look at the chart below of tumbling European equity markets:

 

Why such dismal performance?

 

Europe's #GrowthSlowing data continues to roll in...

 


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