Search Results for: eurozone

Fiscal Impulses in Japan and the Eurozone Japan and the eurozone are expected to benefit from significant fiscal stimulus next year. Image: Gavekal, Macrobond

U.S. and Eurozone Unemployment Rates This chart shows the gap between the unemployment rates of the two economies, while unemployment falls to historic lows. Image: Financial Times

MSCI Eurozone vs. MSCI U.S. This chart shows the large divergence between the MSCI Eurozone Index and the MSCI U.S. Index. Is this an opportunity to increase exposure to eurozone equities? Image: Financial Times

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

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…

Euro to U.S. Dollar (EUR/USD) The euro is under considerable downward pressure, experiencing its worst month in more than a year, largely due to worries about potential U.S. trade tariffs and a weakening economic outlook for the Eurozone. Image: Bloomberg

Stocks – MSCI EMU Earnings Yield Minus Real 10-Year Bund Yield (Equity Risk Premium) The equity risk premium below its 10-year average does not bode well for eurozone stocks. Image: Gavekal, Macrobond

Euro Area GDP vs. Current Activity Indicator Will the eurozone face a severe economic slowdown in 2023? Image: Goldman Sachs Global Investment Research

Oil Prices in Yen and Euros The near-term economic outlook for the Eurozone is bleak, while oil prices in euros are rising. Image: BofA Global Investment Strategy

Hard Economic Data Hard economic data is improving in Eurozone, Asia Pacific, Latin America and the United States. Image: Arbor Research & Trading

ECB Balance Sheet vs. ECB Deposit Rate It could be difficult to push rates further into negative territory without affecting the profitability and financing capacity of Eurozone banks. Image: Jeroen Blokland