Tuesday, December 10, 2013

Europe’s Anemic Recovery (excerpt)

European stock markets rallied smartly during the summer and fall, but have started to flag recently. The region’s leading indicators, which are compiled by the OECD, continued to rebound impressively during October. The region’s purchasing managers have also been upbeat in recent months. However, the hard data on orders and production remain surprisingly comatose. For example, German orders fell 2.2% during October and German output dropped 1.2% during the month. There’s been an uptrend in both in recent months, but they are barely back to where they were in 2010.

Today's Morning Briefing: A Short Worry List. (1) The other side of the pond. (2) Thinking about the downside in London. (3) Seven trouble spots. (4) Tapering could be troublesome for housing and EMEs. (5) Central bankers fighting deflation, which isn’t all bad. (6) More mischief from Washington? (7) If Obamacare is so depressing, why is confidence rising? (8) Europe’s hard data still looks soft. (9) Is Abenomics losing its mojo? (10) Geopolitical risk is always out there somewhere. (11) Too many underinvested bulls? (More for subscribers.)

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