Green Shoots Appearing in European Economic Data
Macroeconomic data in Europe has been weak since the start of 2018. Global macro headwinds linked to the U.S. - trade wars with China, coupled with domestic structural issues such as tightening of emission regulations - are to blame.
Sentiment toward European equities is a weak point, shown by the record outflows of $8.1 billion from European-linked exchange-traded funds in the first 10 months of 2019.1
We believe investors' loss of confidence is probably overdone.
Notably, European economic data is starting to stage a turnaround.
Figure 1: