Keyword: euro area

Euro Area Banks Relative Valuation The relative valuation of euro area banks is still below the levels of the financial crisis, due to falling interest rates and negative rates in Europe. Image: Bloomberg

Euro Area GDP Growth According to the forecasts of 34 economists, GDP growth in the euro area is expected to dip below 1% on average in 2020. Image: Financial Times

U.S. and Euro Area Composition of Corporate Credit Great chart showing that the U.S. is a market-based financial system, while the Euro Area is a bank-based system with 80% of bank loans. Image: Deutsche Bank Global Research

U.S. 10-Year Treasury Yield and Euro Area Cyclicals Relative to Defensives Chart suggesting that euro area cyclicals outperform defensives, when U.S. bond yields rise. Image: Credit Suisse Research

Real M1 Leads Euro Area Real GDP Growth An imminent recession in the euro area? This interesting chart suggests that real M1 leads euro area real GDP growth by 12 months. Image: Pictet Wealth Management

Euro Area Real M1 Growth Leads Euro Area Manufacturing PMI This chart suggests that euro area real M1 growth leads euro area manufacturing PMI by 9 months. Image: Morgan Stanley Research

U.S. Equities at 70-Year Highs vs. European Equities Are European stocks more attractive than U.S. stocks? Currently, the euro area economy is more impacted by the global slowdown than the U.S. economy. And investors also think that the euro area economy is less resilient than the U.S. economy in the event of a shock. Image: BofA…

Eurozone Inflation and Brent Oil Prices This interesting chart shows the direct effect of brent oil prices (YoY % change) on euro area inflation. Image: Jeroen Blokland

Could European Stocks Outperform U.S. Stocks? This chart shows U.S. vs. European stocks at 70-year highs. Keep in mind that investors think that the euro area economy is less resilient than the U.S. economy in the event of a shock. Currently, the euro area economy is more impacted by the global slowdown than the U.S.…

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…