Critically needed monetary liquidity growth is wavering after a modest advance.
The broader money supply remains negative in real terms as EZ private sector credit
continues to decline. The EZ recession-- still mild -- has been slowly deepening and
broadening. The Euro and the stock market remain well off lows based on the
promise of sizable securities purchases from the ECB (If only the needy would ask
for it).
Euro stocks as a group outperformed the US market in the recent rally from early Jun.
even though the Euro weakened against the US$ and fundamentals fared worse compared
to the US. The recent strong comparitive equities performance in the EZ is far too
sophisticated a move for a guy like me who sits a wide ocean apart from Euroland.
IEV and $XEU chart
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