Chart Of The Day

EuroZone ZEW Points to Stronger Equity Markets

Interesting data point here from Guggenheim’s weekly note which might be of particular interest for European readers:

“The ZEW survey of investor expectations for economic growth in the euro zone surprised to the upside in the December release, reaching levels not seen since 2006. Despite lackluster third quarter GDP, economic prospects in the euro zone are improving, as fiscal drag diminishes and the periphery narrows its competiveness gap with core countries. Expectations of better growth have historically been positive for European equities, as seen by the close relationship between the ZEW survey and growth in the Euro Stoxx 50. Combined with favorable valuations relative to the United States, there is considerable near-side upside to euro zone equities.”


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