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Editor's Note: Below is brief excerpt from ETF Pro our monthly newsletter featuring our favorite ETF ideas. Each edition highlights specific ETFs that stand to benefit most from big market moving trends. Below are two ETF ideas to play our current #EuropeSlowing and #ChinaSlowing themes. Click here to learn more about ETF Pro.

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - growth cartoon 05.24.2016

There is little debate that global growth has peaked in rate-of-change terms according to our models. Per the March PMI data releases:

  • 72% of global Manufacturing PMIs are slowing from a sequential perspective and 50% are slowing from a trending perspective.
  • 88% of global Services PMIs are slowing from a sequential perspective and 81% are slowing from a trending perspective.
  • 81% of global Composite PMIs are slowing from a sequential perspective and 69% are slowing from a trending perspective.

Contrast these figures with the January cycle-peak data that showed only 16% of global Manufacturing PMIs, 38% of global Service PMIs and 25% of global Composite PMIs slowing from a trending perspective, respectively.

These trends mirror the trending deceleration we’ve seen across global hard data as well. #ChinaSlowing and #EuropeSlowing remain causal factors.

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - Slide 49

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - Slide 50

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - etf

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - Slide 65

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - Eurozone Composite PMI

ETF Pro (Complimentary): 2 Investing Ideas for China & Europe Slowing - etf pro